Luke Sabourin

The appellant commercial landlord appealed from the Divisional Court's order quashing a motion judge's production order that had found the respondent tenants had impliedly waived solicitor-client privilege over legal advice received when entering into a commercial lease.

The Court of Appeal allowed the appeal, finding three errors by the Divisional Court: applying a correctness standard of review instead of palpable and overriding error, misreading the motion judge's reasons as based on the original rather than amended pleadings, and failing to recognize that even the amended defence still placed reliance on the respondents' understanding of their legal position.

The court clarified that deemed waiver of privilege does not require explicit reference to legal advice and provided a five-point summary of the applicable legal principles.

The Court of Appeal for Ontario dismissed the appeal of Damodar Arapakota and the Arapakota 2006 Family Trust from the Superior Court’s order dismissing their application for delay.

The Court found no error in the motion judge’s conclusion that the delay was inordinate and inexcusable, and that the presumption of prejudice was not rebutted.

The Court also refused to admit fresh evidence, finding it could have been obtained earlier and would not have affected the outcome.

The appeal was dismissed and costs were awarded to the respondents.

The defendant, Fletcher’s Fields Limited, brought a motion for security for costs against the plaintiffs, Robert Llewellyn Jenkins (as trustee for the Estate of Samuel Harrison Ball) and the Estate of Samuel Harrison Ball.

The court found that the plaintiffs did not have sufficient assets in Ontario to satisfy a costs award and had not demonstrated impecuniosity or a good chance of success on the merits.

The court ordered the plaintiffs to post $20,000 as security for costs and awarded $10,000 in costs to the defendant, with both amounts payable within 60 days.

The applicant brought an oppression application seeking an order that the respondent corporation pay $999,007.50 to redeem her preference shares.

The respondents argued the payment would render the corporation insolvent under s. 32(2) of the Business Corporations Act and sought a stay pending a related appeal.

The court found the appeal had already been dismissed and did not affect the preference shares.

The court also rejected the insolvency argument, finding the corporation had sufficient assets and equity.

The court ordered the corporation to pay the redemption amount, finding it unnecessary to determine if the failure to pay constituted oppression.

The plaintiff, One York Street Inc., brought a motion seeking production of the former counsel's file for the defendants, 2360083 Ontario Limited and LCIL Ltd., and other discovery-related orders.

The defendants had initially pleaded lack of legal advice regarding a lease and its extension, but later withdrew this pleading.

The plaintiff argued that the defendants had waived solicitor-client privilege by asserting affirmative defenses of misrepresentation and placing their state of mind in issue.

The court applied a two-step test for deemed waiver of privilege, finding that the legal advice was relevant to the defendants' reliance on alleged misrepresentations and that the defendants had made the receipt of advice an issue through their pleadings.

The court granted the motion for production of the Fogler's file, deeming privilege waived due to fairness considerations.