M. Paris

The defendants sought authorization to release additional funds held in trust to pay legal fees incurred in defending litigation involving multiple defendants.

The funds originated from encumbrances placed on residential properties pursuant to a prior consent order permitting borrowing to finance the legal defence of two defendants.

The court was required to determine the proper allocation of legal fees where work performed by counsel benefitted both those defendants and a co‑defendant who was not entitled to access the encumbered property funds.

Applying principles governing payment of legal fees from assets subject to proprietary injunctions, the court concluded that only part of the joint defence work could properly be charged to the trust funds.

The court ordered that the two defendants were entitled to recover 50% of the total legal fees, taxes, and disbursements from the trust account.

The plaintiff university brought an action against its former Assistant Vice-President and others for deceit, conversion, and conspiracy, alleging a false invoicing scheme and misappropriation of university resources for personal home improvements.

The defendants moved for summary judgment, arguing the action was barred by a full and final release executed upon the employee's termination, and that a property transfer was not a fraudulent conveyance.

The plaintiff moved for a Mareva injunction, an Anton Piller order, and certificates of pending litigation.

The court dismissed the defendants' summary judgment motions, finding genuine issues requiring a trial regarding the scope and validity of the release (due to alleged fraudulent concealment) and the intent behind the property transfer.

The court dismissed the plaintiff's motion for a Mareva injunction, finding insufficient evidence of a risk of asset dissipation, but granted certificates of pending litigation against the two residential properties.