Court File and Parties

COURT FILE NO.: CV-20-00649378

DATE: 20201211

SUPERIOR COURT OF JUSTICE - ONTARIO

RE: Beaux Properties International Inc.

AND:

Quaestus Management Corp., Quaestus Corporation 2344011 Ontario Inc., 1536320 Ontario Limited, Barry Godfrey and Michelle Godfrey a.k.a. Michelle Adelman

BEFORE: Mr. Justice Chalmers

COUNSEL: E. Birnboim and M. Crampton, for the Plaintiff(s)/Applicant(s)

R. Das and R. Kulanda, for the Defendant(s)/ Respondent(s)

HEARD: Telephone Conference

ENDORSEMENT

[1] This action involves a claim between two ventures with respect to certain real estate development projects. This case conference is with respect to litigation involving the property located at 1179 Hunt Club Road in Ottawa. Beaux Properties and 2344011 Ontario Inc. (“Quaestus”) are joint tenants in a group of condominiums owned by 1179 Hunt Club Inc. (the “Hunt Club”). The Hunt Club was involved in previous litigation arising out of an aborted sale of one of the units. The Hunt Club brought an action against the defaulting purchaser. The action was dismissed. The Hunt Club subsequently brought a solicitor’s negligence action against the lawyers who were acting on its behalf in the real estate transaction (the “Solicitors Negligence Action”). The Hunt Club has been represented by Mr. Birnbaum in that action.

[2] Since the issuance of the Solicitors Negligence Action, there has been a breakdown in the relationship between the principals of the Hunt Club. Quaestus brought an application against Beaux. By order of Justice Koehnen dated March 3, 2020, the Application was directed to an Arbitration. The Arbitration is currently proceeding with Arbitrator, Larry Banack. Beaux commenced this action when Quaestus objected the issues to be properly subject to arbitration. Mr. Birnbaum was retained by Beaux to act on its behalf in this action.

[3] Examinations of Discovery are being scheduled in the Solicitors Negligence Action. Mr. Birnbaum is acting for the Hunt Club in that action and for Beaux in the action brought against Quaestus. Mr. Birnbaum states that he is in a conflict of interest in continuing to represent the Hunt Club in that Solicitors Negligence Action.

[4] The parties agree that Mr. Birnbaum should no longer act for the Hunt Club in the Solicitors Negligence Action. I agree. I will grant an order removing him as solicitor of record. The Hunt Club will then have 30 days to retain new counsel or bring a motion under R. 15.02 granting leave to be represented by a person other than a lawyer. Mr. Birnbaum will forward a draft order for my consideration.

[5] Counsel for Quaetus argues that it is entitled to production of Mr. Birnbaum’s complete file with respect to the Solicitors Negligence Action. As an owner and director of the Hunt Club, Mr. Birnbaum was acting on its behalf and as the client it is entitled to production of the complete file.

[6] Mr. Birnbaum states that once he is removed as solicitor of record, he will forward his file to the new lawyer retained to represent the Hunt Club in the litigation. Any issues with respect to whether the complete file was provided to new counsel can be addressed at that time.

[7] I am not prepared to schedule a motion at this time with respect to any relief sought by either party pursuant to the Ontario Business Corporations Act. Should either party wish to bring such a motion, they must schedule the motion in the usual course through the Civil Practice Court.

[8] I am not seized.

Date: December 11, 2020