The applicants, Dr. Bernstein's corporations, moved for judgment against Norma Walton, Ronauld Walton, and their companies for $66.9 million, alleging civil fraud and fraudulent misrepresentation, and sought a declaration that the debt would survive bankruptcy.
The Waltons brought a counter-application for damages and a cross-motion for a trial on the fraud issue.
Christine DeJong Medicine Professional Corporation and Gideon and Irene Levytam also sought relief regarding their investments.
The court found the Waltons liable for civil fraud and fraudulent misrepresentation, awarding the applicants $66.9 million plus interest, and declared the debt non-dischargeable in bankruptcy under s. 178(1)(d) and (e) of the BIA.
The Waltons' counter-application was struck as frivolous and vexatious.
The applicants' claims against Schedule C Companies for knowing assistance and knowing receipt were dismissed.
DeJong was granted constructive trusts over specific Schedule C properties for their investments due to the Waltons' breach of fiduciary duties.
