Sandra Antoniani

The accused applied for a stay or exclusion of evidence under ss. 8 and 24(2) of the Charter after police discovered cocaine and cash during a vehicle stop.

The defence argued the traffic stop was a pretextual ruse based on a hunch about drug activity.

The court held that the officer had lawful authority under s. 216(1) of the Highway Traffic Act to stop the vehicle to verify licensing and investigate suspicious circumstances.

Drugs became visible when the accused exited the vehicle, providing reasonable grounds for arrest and a search incident to arrest.

The court also found the subsequent strip search at the station reasonable under the principles set out in Golden.

The parties agreed on the disposition of costs following an appeal and cross-appeal.

The Court of Appeal ordered the appellants to pay costs to the respondent, Commercial Union Life Assurance Company of Canada.

Specifically, Steven Michael Overgaard was ordered to pay $25,000, JIIG Holdings Inc. was ordered to pay $20,000 for abandoned grounds of appeal, and MHI Brokers Ltd., JIIG Holdings Inc., and Steven Michael Overgaard were ordered to jointly and severally pay $5,000 for the cross-appeal.

The appellants appealed a trial judgment finding that their company held insurance premiums in trust for the respondent insurer and that the individual appellant, as the directing mind of the company, was personally liable for knowing assistance in a breach of trust for withholding those premiums.

The Court of Appeal dismissed the appeal, upholding the trial judge's findings that a statutory trust existed under s. 402(1) of the Insurance Act, which applies to both licensed and unlicensed agents, and that an express trust existed at common law.

The Court also affirmed that the individual appellant was personally liable because he directed the company to take a knowingly wrongful risk to the prejudice of the insurer.