The plaintiff, 784773 Ontario Limited O/A Lowton Co-Tenancy, brought a motion for summary judgment against the defendants, Michael Larkin and Larkin + Land Use Planners Inc., for misappropriated funds while acting as trustees.
The defendants admitted to misappropriating funds and owing a total of $1,728,304, of which $1,038,616 had already been paid via a partial judgment.
The remaining contentious issue was whether the plaintiff was entitled to the entirety of the remaining $739,926, as the defendants argued it might belong to other group members.
The court found no genuine issue requiring a trial, emphasizing the admitted breach of fiduciary duty and misappropriation, and ruled that the wrongdoer should not benefit from a lack of exacting proof.
The motion was granted, awarding the plaintiff the remaining $739,926, reimbursement for forensic accounting costs, and a declaration that the debt arose from fraud/misappropriation while acting in a fiduciary capacity.