Leah Alexis Cummings

The Moving Defendants, Fulton Development Inc. and 2580867 Ontario Corp., brought a motion to strike all or portions of the Plaintiffs' statement of claim, which included derivative and oppression claims.

The claims arose from a failed real estate transaction, a $500,000 loan, and the alleged misappropriation and improper distribution of a $327,500 refunded deposit by certain directors.

The court dismissed the motion to strike, finding the derivative and oppression claims viable and noting that the motion constituted an impermissible collateral attack on a prior order granting leave for the derivative action.

On consent, a crossclaim and counterclaim from a related 2019 action were consolidated with the current action, and the balance of the 2019 action was stayed.

The plaintiffs sought to further extend a Mareva injunction against the defendants, alleging a multi-million dollar fraud.

Defendant Yahya Dikeni Hashiru, director of Spotless Consultancy Inc., moved to vacate or vary the injunction, claiming he was merely a middleman facilitating a legitimate investment.

The court found Mr. Hashiru's explanation lacked credibility, particularly given his transfers of funds after being aware of the injunction.

Applying the five-step test for a Mareva injunction, the court found a strong prima facie case against Mr. Hashiru and a clear risk of asset dissipation.

The Mareva injunction was extended until further order of the court, and Mr. Hashiru's motion to vacate or vary was dismissed.