The appellant law firm appealed an order dismissing its motion for a declaration that certain bank accounts in the respondent's name were held in trust for the appellant, and for a garnishment order.
The Divisional Court found that the motions judge erred in applying the doctrine of res judicata, as the trust claim was not part of the earlier proceedings regarding personal liability.
However, the appeal was dismissed because garnishment under Rule 60.08 was not the proper procedure to resolve a disputed trust relationship.
The dismissal was without prejudice to the appellant commencing a separate action.
Leave to appeal costs was granted, and the costs order was varied to a partial indemnity basis.