Robert P. Hine

The defendants brought a motion for summary judgment seeking to dismiss portions of a civil action alleging damages arising from the disclosure of confidential taxpayer information by a government employee to police during an arson investigation.

The estate of the deceased plaintiff alleged reputational harm, loss of property, and Charter breaches.

The court held that the cause of action relating to damage to property arose before the deceased’s discharge from bankruptcy and therefore vested in the bankruptcy trustee under the Bankruptcy and Insolvency Act.

As a result, the estate lacked legal capacity to pursue claims relating to property loss.

The court dismissed those claims but allowed the personal claim for damage to reputation to proceed to trial, while striking Charter breach allegations that could not survive the claimant’s death.

The appellants appealed the quantum of damages awarded at trial for the respondent's breach of a restrictive covenant and fiduciary duty.

The trial judge had limited damages to the two-year period of the covenant, less a 25% contingency for clients who would have left anyway.

The Court of Appeal dismissed the appeal, finding that the appellants elected to claim recovery of loss rather than disgorgement, and the trial judge's factual assessment of that loss was reasonable.

The respondent's cross-appeal regarding liability was also dismissed.

The appellant franchisors appealed a trial judgment granting the respondent franchisees rescission of their franchise agreement and damages under the Arthur Wishart Act.

The franchisors argued they had substantively complied with disclosure requirements by providing information piecemeal over several months.

The Court of Appeal dismissed the appeal, holding that the Act strictly requires disclosure in a single document delivered at one time.

The Court also found that the franchisees did not affirm the contract by continuing to operate the business briefly to mitigate losses after serving the notice of rescission, as statutory rescission operates differently from equitable rescission.