Natalia Sidlar

The applicants brought a motion to continue a Mareva injunction that had been granted ex parte by Justice Mathai on May 16, 2025.

The injunction was sought in connection with an alleged fraudulent conveyance of a commercial property (the Upper James Property) and a breach of an agreement for purchase and sale.

The respondent provided evidence explaining the business rationale for the property transfer and subsequent sale, including financing constraints and the need to relocate the business to a more affordable location.

The court found that the respondent's evidence, if accepted, demonstrated that the transactions were not motivated by asset dissipation or an intent to avoid judgment.

The court discontinued the Mareva injunction, finding no compelling evidence of fraudulent conveyance and noting the significant hardship the injunction was causing to the respondent's business and family.

The defendants, Michael Slattery and Skylark Holdings Ltd., brought a motion for summary judgment to dismiss the action against them.

They argued that the plaintiffs had not sustained any damages and had breached the immediate disclosure rule by failing to disclose a partial settlement agreement.

The court dismissed the motion, finding a genuine issue for trial regarding damages due to conflicting evidence on reliance, and determining that the partial settlement did not significantly alter the litigation dynamics to constitute a breach of the immediate disclosure rule.

The appellants appealed a summary judgment for a mortgage deficiency, arguing that the respondent (mortgagee) failed to take reasonable precautions to obtain the property’s true market value during power of sale proceedings, leading to an improvident realization.

The Court of Appeal dismissed the appeal, finding that the motion judge correctly applied the summary judgment test and that there was no evidence of the respondent failing to take reasonable precautions or of an improvident sale.

The court also rejected the appellants' arguments regarding inadequate evidence and the legal test for a mortgagee's duty, affirming that a mortgagor must show a higher price would have been obtained but for any alleged breach.

The plaintiffs brought a motion to compel the production of financial records relating to mortgages held by the defendants in trust for the plaintiffs, alleging a fraudulent scheme to misappropriate funds.

The defendants argued that the documents should be produced in the ordinary course of litigation.

The court held that beneficiaries of a trust have a proprietary right to records relevant to an accounting for the trust property, separate from the ordinary rules of discovery, and ordered the defendants to produce the requested documents or confirm their non-existence.

Acasi Machinery Inc. brought a motion to stay an action commenced by Jeremy Kessler Canadian Mustard Inc. o/a Kozlik’s Mustard in Ontario, arguing that a forum selection clause in their contract mandated disputes be resolved in Florida.

The court dismissed the motion, finding strong reasons to avoid the clause.

The clause was neither negotiated nor brought to Kozlik's attention, indicating an unequal bargaining power.

The court also applied the Moran principle, stating that manufacturers should expect to defend negligence claims where their products are used, and noted that the availability of Zoom reduces the significance of witness location in determining the convenient forum.

Ontario was found to have a real and substantial connection and to be the convenient forum.

The defendant brought a motion to compel the plaintiff to answer two refused questions during discovery and to produce environmental documents (Environmental Site Assessments and Risk Assessment Documents) related to alleged property contamination.

The defendant argued these documents were relevant to the pleaded issue of contamination in the Fresh as Amended Statement of Defence and Counterclaim.

The plaintiff argued the documents were not relevant or that sufficient documents had already been produced.

The court found the requested documents relevant to the issue of contamination and granted the defendant's motion, ordering production of the documents and re-attendance for discovery, with costs awarded to the defendant.