R. Cucci

The plaintiff claimed beneficial ownership of two residential properties legally owned by the defendant, relying on alleged express trust documents or, alternatively, an equitable trust.

The court found the express trust documents were forgeries.

However, based on the parties' joint venture to flip the properties and their respective financial contributions to acquisition, maintenance, and improvements, the court imposed constructive trusts.

The plaintiff was awarded an 81 percent beneficial interest in one property and a 32 percent beneficial interest in the other to remedy unjust enrichment.

The plaintiff brought a motion under Rule 60.12 to strike the defendants' Statement of Defence for failing to comply with a prior court order to pay costs forthwith.

The defendants claimed they intended to appeal the prior order but failed to file the notice of appeal or take concrete steps for months, citing health issues and the COVID-19 pandemic.

The court found the defendants' explanations unconvincing and their delay deliberate.

Applying the principles for striking pleadings, the court granted a 'last chance' order, giving the defendants 30 days to comply with the prior order or obtain a stay, failing which their Statement of Defence would be struck.