ONTARIO
SUPERIOR COURT OF JUSTICE
COURT FILE NO.: CV-14-515989
DATE: 20151218
BETWEEN:
COAST TO COAST AGAINST CANCER
Plaintiff
– and –
STEVEN H. SOKOLOWSKI,
THE COURTYARD GROUP OF COMPANIES INC., SHERRY AZIM (in her personal capacity and in her corporate capacity, o/a COMPLETE BUSINESS SOLUTIONS) and PHILIPPA L. HERRINGTON (in her personal capacity and in her corporate capacity, o/a HERRINGTON ASSOCIATES)
Defendants
Kirsten A. Thoreson, for the plaintiff
Steven H. Sokolowski, self-represented
ENDORSEMENT
DIAMOND J.:
[1] On November 30, 2015, I released my Endorsement granting the plaintiff Coast to Coast Against Cancer (“Coast”) summary judgment against the defendant Steven H. Sokolowski (“Sokolowski”) in the total sum of $697,237.00.
[2] On December 15, 2015, I received correspondence from counsel for Coast which (a) confirmed that the parties had settled the issue of costs of the motion and the action, (b) advised that my Endorsement did not address Coast’s request for punitive damages, and (c) made submissions in support of a request that the Mareva injunction against Sokolowski (previously ordered and continued by Justice Chiappetta and Justice Brown respectively) be further continued until such time as Coast causes a writ of seizure and sale to be issued, or a receiver to be appointed over Sokolowski's assets.
[3] With respect to the issue of costs, in accordance with the agreement reached between the parties I order that costs of both the action and the motion are payable by Sokolowski to Coast in the all-inclusive sum of $150,000.00.
[4] With respect to Coast’s request that I address the issue of its request for punitive damages, I agree with Coast that my Endorsement inadvertently omitted to address that request. Pursuant to Rule 59.06(1) of the Rules of Civil Procedure, I may amend an order in any particular upon which I did not adjudicate. There is no dispute that Coast requested that I make an Order for $100,000.00 in punitive damages against Sokolowski in its Statement of Claim and at the return of its motion for summary judgment, and that my Endorsement did not address this request.
[5] As Justice Lemay recently stated in 1698496 Ontario Ltd v Zoberi 2015 ONSC 5267 (S.C.J.), “punitive damages are awarded in exceptional cases for “malicious, high handed” conduct that offends the court’s sense of decency…in order to trigger an award of punitive damages, the conduct must represent a marked departure from ordinary standards of decent behavior”.
[6] In my view, this is an appropriate case for punitive damages. I found Sokolowski liable for fraud and breach of fiduciary duty. Deceitful conduct designed to misappropriate funds from charitable organization for personal use is conduct which markedly departs from the standards of decent behaviour, and ought to be admonished by the Court. To condemn this reprehensible conduct and deter a defendant such as Sokolowski and others from similar conduct in the future, I order Sokolowski to pay Coast punitive damages in the amount of $50,000.00 without pre-judgment interest.
[7] Finally, with respect to Coast’s request to further extend the Mareva injunction, I have yet to receive responding submissions on this issue from Sokolowski, who shall have until January 5, 2016 to serve and file those submissions. After the receipt and review of Sokolowski’s responding submissions, I shall render a decision on that issue
Diamond J.
Released: December 18, 2015
COURT FILE NO.: CV-14-515989
DATE: 20151218
ONTARIO
SUPERIOR COURT OF JUSTICE
BETWEEN:
COAST TO COAST AGAINST CANCER
Plaintiff
– and –
STEVEN H. SOKOLOWSKI,
THE COURTYARD GROUP OF COMPANIES INC., SHERRY AZIM (in her personal capacity and in her corporate capacity, o/a COMPLETE BUSINESS SOLUTIONS) and PHILIPPA L. HERRINGTON (in her personal capacity and in her corporate capacity, o/a HERRINGTON ASSOCIATES)
Defendants
ENDORSEMENT
Diamond J.
Released: December 18, 2015