Madison Robins

The appellant, an investor, sought damages from specific-project corporations on the basis of knowing assistance in a breach of fiduciary duty arising from a complex multi-million dollar real estate fraud perpetrated by a married couple.

The couple convinced investors to invest in specific-project corporations to acquire and hold commercial real estate, but instead diverted the funds for personal use.

The application judge dismissed the knowing assistance claim, finding the fraudulent wife's knowledge could not be imputed to the specific-project corporations.

The majority of the Court of Appeal allowed the claim.

The Supreme Court of Canada allowed the appeal, agreeing with the dissenting judge below that the knowing assistance claim must fail.

The Court clarified that while Livent permits courts to decline to apply corporate attribution where the public interest so requires, the minimal criteria from Canadian Dredge must always first be satisfied.

The plaintiff, 1085372 Ontario Limited, brought an action under the Bankruptcy and Insolvency Act (BIA) and the Fraudulent Conveyances Act (FCA) to set aside a transfer of shares in Linus Entertainment Inc. from Michael Shumak to Geoff Kulawick.

The plaintiff alleged the transfer was at undervalue or a fraudulent conveyance.

The court found that the parties dealt at arm's length, the transaction occurred outside the one-year clawback period under the BIA, and the transfer was not at undervalue.

Furthermore, the court found no fraudulent intent on the part of Shumak and that Kulawick acted in good faith and paid good consideration.

The action was dismissed.

Datawind Inc. appealed an order of the Superior Court of Justice registering a costs order from the United Kingdom High Court of Justice under the Convention for the Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters.

Datawind argued that the foreign court lacked jurisdiction over it as a third party to the original proceeding, that the costs order was not for a definite sum, and that it was denied natural justice.

The Court of Appeal dismissed the appeal, finding that the foreign court had jurisdiction, that the interim payment on account of costs constituted a registrable judgment for a definite sum, and that no denial of natural justice occurred.

The respondents brought a motion to quash an appeal from a trial judge's order declaring a mistrial and discharging the jury.

The appellant argued the order was final because it went to the jurisdiction of the court.

The Court of Appeal held that the trial court did not lose jurisdiction but expressly retained it, making the mistrial declaration an interlocutory order.

The motion to quash the appeal was granted.