Robert P. Marcantonio

Following the dismissal of a bank’s summary judgment motion in an action alleging breach of trust and negligence, the plaintiffs and a co-defendant sought costs.

The court considered Rule 49 settlement offers but found they did not promote compromise, as they effectively required the moving party to abandon its motion.

Although the bank succeeded on the legal issue that no trust existed, a negligence issue remained requiring trial.

Given the bank’s unsuccessful motion and the limited value of the underlying claim, the court found the motion unnecessary and awarded substantial indemnity costs.

Costs of $15,000 were awarded to the plaintiffs and $15,000 to the co-defendant.

The defendant bank brought a motion for summary judgment seeking dismissal of claims alleging it negligently released $50,000 held in a bank account that had been ordered by a court as security for child support obligations.

After the death of the account holder, the Canada Revenue Agency issued a Requirement to Pay for tax debts and the bank remitted the funds.

The plaintiffs argued the funds should have been paid to satisfy child support arrears, and that the bank had been aware of efforts by the estate trustee and the Office of the Children’s Lawyer to arrange payment of those arrears.

The court held that significant factual issues remained, including whether the arrears should have been paid before the Requirement to Pay and whether the bank’s conduct created liability through negligence or estoppel.

Applying the summary judgment principles articulated in Combined Air Mechanical Services Inc. v. Flesch, the court concluded that the evidence could not be fully appreciated without a trial.

The appellant appealed a summary judgment declaring that the parties had entered into a binding and enforceable settlement agreement.

The agreement required the appellant to deliver a final version of a DVD in exchange for an additional $10,000 payment.

The Court of Appeal dismissed the appeal, finding no genuine issue for trial, as the appellant's counsel had clearly and unequivocally accepted the offer via email.

The court also rejected arguments of economic duress and repudiation.

The appellant sought to pursue a personal claim against a municipality for loss of income arising while he was employed by a now-bankrupt company.

The court held that, as pleaded, the appellant had no cause of action against the municipality in his personal capacity, even though he was not purporting to advance a claim on behalf of the bankrupt corporation.

While the court did not fully agree with the motion judge's reasons, it agreed with the result.

The appeal was dismissed with costs and the cross-appeal was quashed without costs.