Matthew Lerner

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.

In the context of Laurentian University's CCAA proceedings, the moving party brought a motion seeking an order to direct the Monitor to engage in mediation regarding its appeal of a Claims Officer's decision.

The Claims Officer had upheld the Monitor's disallowance of the moving party's $9.8 million claim for loss of commercial value.

The court dismissed the motion, finding that the existing claims process provided an adequate mechanism for resolving the dispute through the pending appeal.

The court also noted that the request for mediation was made too late, as it was brought only after the Claims Officer had already determined the matter on its merits.

The plaintiff sued his former solicitor and law firm for negligence, breach of contract, and breach of fiduciary duty regarding the preparation of a marriage contract.

The marriage contract was previously set aside in a divorce proceeding because the plaintiff's former spouse did not understand its nature and consequences, largely due to the solicitor's failure to ensure proper independent legal advice and his conflict of interest.

The court found the solicitor breached the standard of care and his fiduciary duties.

The court held that 'but for' the solicitor's negligence, the marriage contract would have been enforceable, and awarded the plaintiff damages for the equalization payment, legal costs, and financing interest incurred.

The applicant brought an application to enforce his rights under a Memorandum of Agreement (MOA) regarding a cannabis licence in Zimbabwe.

The respondents moved to stay the proceedings, arguing the MOA mandated arbitration at the London Court of International Arbitration.

The applicant argued the MOA also contained a non-exclusive jurisdiction clause for Canadian courts, creating a conflict that allowed him to choose the forum.

The court found that it was arguable the dispute fell within the mandatory arbitration provision and, applying the competence-competence principle, stayed the application to allow the arbitral tribunal to rule on its own jurisdiction.

The corporate defendant brought a motion to adjourn the trial date after its counsel was removed from the record shortly before trial.

The plaintiff and defendants by counterclaim strongly opposed the adjournment, arguing the defendant's principal had delayed in retaining new counsel.

The pre-trial judge determined she had jurisdiction to hear the adjournment request under Rule 50.07.

Despite finding the defendant's principal largely responsible for the delay, the court reluctantly granted the adjournment to allow the unrepresented corporation to retain counsel, noting this was the first fixed trial date and there was no evidence of prejudice.

The adjournment was granted on peremptory terms with costs thrown away awarded to the opposing parties.

In a priority dispute following the bankruptcy of a paving company, a bond company argued that funds held by the receiver in a project account were statutory trust funds under the Construction Lien Act and therefore excluded from the bankrupt's estate under s. 67(1)(a) of the Bankruptcy and Insolvency Act.

The court dismissed the trust claim, finding that the funds lacked the certainty of subject matter required to constitute a true common law trust, as they were not identifiable or held separately prior to the receivership.

Consequently, the funds were to be distributed under the BIA scheme.

The defendant, KPMG LLP, moved for an order relieving former directors of the plaintiff, Cash Store, from a contractual obligation not to cooperate with KPMG in the ongoing litigation.

This obligation was contained in an undisclosed side letter agreement that formed part of a global settlement under the CCAA.

The court found that because the side letter was not disclosed to creditors, KPMG, or the court during the CCAA plan approval process, Cash Store lacked the authority to enter into the impugned term.

Consequently, the court held that the prohibition against communicating with KPMG was not binding on the former directors, and the motion was granted.

In CCAA proceedings involving a payday lending enterprise, class members in Ontario consumer class actions moved for approval of three settlement agreements forming part of a broader global resolution of litigation involving the debtor companies, their directors and officers, and related parties.

The settlements resolved certain class claims and partially resolved a third‑party lender claim, providing more than $10 million in recovery with potential participation in future litigation proceeds.

The court applied established settlement approval factors including likelihood of success, litigation risks, counsel recommendations, absence of objections, and arm’s‑length negotiations.

The court concluded that the settlements were fair, reasonable, and in the best interests of the class and the restructuring process.

The Ad Hoc Committee of Purchasers of the Applicants' Securities moved for approval of a settlement agreement and plan of allocation in the context of CCAA proceedings involving Cash Store Financial Services and related entities.

The settlement provided for a payment of $13,779,167 by the defendants to resolve allegations of false and misleading statements regarding financial results.

The court approved the settlement and the associated third-party releases, finding them fair, reasonable, and consistent with the purpose of the CCAA.

The motion to approve the plan of allocation was adjourned on consent.

The defendant moved to dismiss the plaintiffs' 2003 franchise dispute action for delay under Rule 24.01(1)(e), and the plaintiffs brought a cross-motion to restore the action to the trial list.

The court found a period of inordinate and unexplained delay, largely attributable to the plaintiffs' former counsel's neglect.

However, the court also found that the delay caused actual prejudice to the defendant, as key executives involved in the franchise negotiations had left the company during the delay period, creating a substantial risk that a fair trial was no longer possible.

The defendant's motion was granted and the action was dismissed.

In a CCAA proceeding, the Applicants (Hollinger Inc. et al.) sought approval of settlement agreements with their former auditors (KPMG) and lawyers (Torys).

The Non-Settling Defendants, including Conrad Black and David Radler, opposed the settlements, arguing the court lacked jurisdiction and that the included third-party releases and bar orders would deprive them of procedural rights to discovery.

The court held it had jurisdiction under the CCAA to manage litigation as a corporate asset.

The court approved the Pierringer-style settlements, finding that the procedural rights of the Non-Settling Defendants could be adequately protected through active case management and the application of the principle of proportionality in discovery.

The parties separated after a 16-year marriage.

During a brief reconciliation attempt, they negotiated a marriage contract.

The wife intended to give the husband one-half the value of the matrimonial home, but a drafting error in the contract gave him the full value.

The husband and his lawyer noticed the error but failed to seek clarification.

At the time, the wife was suffering from undiagnosed bipolar disorder and hypomania, causing her to act recklessly.

The court found the contract void ab initio due to a lack of consensus ad idem on a fundamental term.

Alternatively, the court set aside the contract under the Family Law Act due to the wife's lack of capacity and unconscionability.

The court ordered an equalization payment, retroactive spousal support, and retroactive and ongoing child support.