Martin G. Mendelzon

The Divisional Court issued supplementary reasons to clarify its earlier decision partially allowing the appellant's appeal from an Ontario Securities Commission decision.

The original appellate decision set aside specific ten-year bans and an administrative penalty, remitting them for a fresh determination.

Upon request for clarification, the Court agreed with the parties that the remedy should apply to all ten-year bans imposed on the appellant.

The earlier decision was amended to set aside all such bans and remit them to the Commission.

The appellant appealed a decision of the Ontario Securities Commission finding him liable for unregistered and illegal trading of securities and imposing sanctions.

The Divisional Court upheld the Commission's findings on liability, concluding it was reasonable to find the appellant engaged in acts furthering trade and received commissions.

However, the court found the Commission erred in its sanctions analysis by misapprehending the timing of a previous ban imposed on the appellant in Alberta.

The appeal was allowed in part, with the trading bans and administrative penalty set aside and remitted to the Commission for a fresh determination.

The appellants appealed an order validating substituted service of a statement of claim on defendants residing in Guatemala.

Guatemala is not a signatory to the Hague Convention, and service was attempted by notaries in a manner that did not comply with Guatemalan law.

The Divisional Court dismissed the appeal, upholding the motion judge's finding that Rule 17.05(2) unambiguously allows a plaintiff to choose to serve a foreign party in accordance with Ontario rules when the foreign jurisdiction is a non-contracting state.

The Court held that this express rule overrides the international principle of comity.