Court of Appeal for Ontario

Citation: Syndicat Management Inc. v. Torkin Manes LLP, 2014 ONCA 230

Date: 20140326

Docket: C57848

Watt, Lauwers and Benotto JJ.A.

Between

Syndicat Management Inc., Terradigm Developments Inc., Larry Krauss, in trust and Black Inc.

Applicants (Appellants)

and

Torkin Manes LLP

Respondent (Respondent in Appeal)

Counsel:

James M. Wortzman, for the appellants

Joshua Ginsberg, for the respondent

Heard and released orally: March 21, 2014

On appeal from the order of Justice Kevin W. Whitaker of the Superior Court of Justice, dated October 24, 2013.

ENDORSEMENT

[1] In our view, the application judge erred in finding that there were no special circumstances within the meaning of this court’s decision in Echo Energy Canada Inc. v. Lenczner Slaght Royce Griffin LLP, 2010 ONCA 709. The application judge did not account for the admitted 15% discount to be given by the respondent to the appellants that the respondent may have failed to honour. Nor did he account for the existence of the escrow agreement that secured the amount in dispute. There is no evidence to support the application judge’s finding that the parties had “arrived at a resolution of these issues”. The delay referred to by the application judge was on both sides and is largely explained by the parties’ abortive negotiation efforts. There is no evidence of prejudice.

[2] In our view, given the basic dispute over the promised discount, the final few accounts cannot be fairly assessed in isolation from the full sequence of accounts rendered by the respondent to the appellants.

[3] The appeal is allowed. The decision of the application judge is set aside and leave granted to the appellants to assess all of the accounts rendered to them by the respondent law firm.

[4] Costs to the appellant in the amount of $13,000, inclusive of disbursements and all applicable taxes.

“David Watt J.A.”

“P. Lauwers J.A.”

“M.L. Benotto J.A.”