Hockney v. Kneeland, 2025 ONSC 1309

Court File No.: CV-24-00727917-00ES
Date: 2025-02-27
Ontario Superior Court of Justice

RE: Michael Hockney, David Hockney, Johnathan Thomas Hockney, Jennifer Hockney, Emma Hockney, Will Hockney, Jack Hockney, Applicants
-and-
Mary Jane Kneeland, in her personal capacity and in her capacity as Estate Trustee of The Estate of Mary Jane Hockney, deceased, Respondent

Before: Frederick L. Myers
Counsel: Melissa Elmaleh, for the Applicants
Heard: 2025-02-26

Endorsement

Question: What happens when you tell the Law Society of Ontario that for nearly a decade a lawyer estate trustee has failed to distribute $150,000 she holds in trust for beneficiaries?

Answer: Not quite nothing; but not much of anything.

The History

[1] Mary Jane Hockney passed away December 23, 2014.

[2] Ms. Hockney signed a will in 2011. In a codicil dated April 16, 2012, Ms. Hockney appointed her lawyer Mary Kneeland as her sole estate trustee.

[3] Ms. Kneeland drafted both the will and the codicil for Ms. Hockney.

[4] Ms. Hockney left the residue of her estate to her seven grandchildren equally. Most were still minors at the date of Ms. Hockney’s death.

[5] The evidence for this application was given by beneficiary Emma Hockney. I will refer to her below as “Ms. Hockney” and I will refer to the deceased Mary Jane Hockney as the “Deceased.”

[6] The assets of the Deceased consisted of approximately $255,000 in cash or cash equivalents. She had minimal liabilities at the date of death. That works out to about $36,400 per beneficiary subject to payment of liabilities, taxes, and ongoing costs of administration.

[7] By letter dated December 31, 2014, lawyer Kneeland advised the applicant grandchildren that she was the Estate Trustee and that the will divided the estate into seven parts. Lawyer Kneeland advised that debts and taxes had to be paid before the residue can be distributed.

[8] On April 22, 2015, lawyer Kneeland advised that probate was delayed. She also advised that she was acting as counsel to the estate. She mentioned that some specific legacies of “other assets” had been distributed to other beneficiaries.

[9] On June 17, 2015, lawyer Kneeland provided a copy of the will to Ms. Hockney. She promised a further letter setting out details of the assets brought into the estate and the outstanding bills.

[10] On February 16, 2016, lawyer Kneeland advised Ms. Hockney that she would “soon be able to dispense part of your inheritance.” She said there was ongoing delay obtaining probate because the court was not happy with the forms Ms. Kneeland had submitted. She also advised that TD Bank had the estate’s funds. She said that tax returns for 2014, 2015, and a “final” tax return would be prepared by the Deceased’s tax preparer. She also reiterated that she would be invoicing the estate for her legal work separate from her work as the Estate Trustee.

[11] On August 18, 2016, lawyer Kneeland apologized to Ms. Hockney “for the delay in this matter.” She advised that she needed to ask the bank “and other agencies” to reissue statements because part of her file “mysteriously disappeared” when she painted her office. She included in the letter a general statement of the assets and liabilities of the estate. The statement showed about $255,000 in bank accounts and mutual funds and about $4,000 in monies paid out by the estate. She committed to provide a “more detailed summary.”

[12] By letter dated May 7, 2017, lawyer Kneeland provided Ms. Hockney and the other beneficiaries with cheques of $15,000 each. ($15,000 x 7 = $105,000). She blamed the delay on carelessness of H&R Block and the need to deal with TD Bank to transfer funds before she could write cheques.

[13] On February 20, 2018, Ms. Hockney complained to the Law Society of Ontario seeking to address the ongoing delay. Eight months later, on October 18, 2018, the Law Society of Ontario told Ms. Hockney that it had cautioned lawyer Kneeland about communication, delay, and practice management.

[14] The Law Society of Ontario apparently told Ms. Hockney that a caution was a significant professional governance action.

[15] A few days later, on October 29, 2018, lawyer Kneeland wrote to Ms. Hockney to confirm oral conversations she had had with some beneficiaries. She said that she was still dealing with taxes and would have to consult an accountant to persuade Revenue Canada to allow medical expenses claimed on behalf of the Deceased. She wrote that:

THE INITIAL DELAY WAS THE LOSS OF MATERIAL BY THE FIRM PREPARING THE TAXES.

I WILL DO A BETTER JOB OF KEEPING YOU APPRISED OF THE PROGRESS. [Upper case in Original.]

[16] I cannot tell if the loss of the file by the tax preparer replaced Ms. Kneeland’s prior loss of the file or was a second loss of the file in this one estate.

[17] Ms. Hockney heard nothing further from the Law Society of Ontario.

[18] On September 5, 2019, lawyer Kneeland advised that taxes were not yet settled. She blamed delay on eye surgery that she had to undergo and the retirement of the financial officer at the bank.

[19] On March 3, 2022, another beneficiary made another complaint to the Law Society of Ontario. The Law Society of Ontario advised that it obtained an undertaking signed by lawyer Kneeland dated February 22, 2022 committing her to complete the administration of the estate either by December 31, 2022 or, if she was required to pass her accounts, then she would complete the estate administration by June 30, 2023.

[20] The undertaking also committed lawyer Kneeland to report in writing to the beneficiaries before March 31, 2022 and every three months thereafter to June 30, 2023.

[21] Lawyer Kneeland sent reporting letters dated March 25, 2022, June 22, 2022, July 29, 2022, and to some beneficiaries on October 3, 2022.

[22] No money, no accounting, and no peep has been heard from lawyer Kneeland since October, 2022 despite efforts by beneficiaries to follow-up with her. Counsel advised me that the Law Society of Ontario told the beneficiaries that it had closed its file.

[23] The beneficiaries have heard nothing further from lawyer Kneeland or the Law Society of Ontario despite the significant professional governance action taken in 2018 and the written undertaking in which lawyer Kneeland solemnly committed to the governing authority to complete the administration of the estate by December 31, 2022 or at latest June 30, 2023.

This Proceeding

[24] In September, 2024 the applicants commenced this proceeding to require Ms. Kneeland to account and to complete the administration of the estate. They have made eight efforts to serve Ms. Kneeland.

[25] The process servers left their business cards at Ms. Kneeland’s door and were called at least twice by a woman who would not give her name. The caller ID displayed on one call was Paul Kneeland. On another call, the caller asked the process server to leave materials inside her screen or storm door. Counsel for the applicants also sent materials and details about yesterday’s hearing by email to the two email accounts that lawyer Kneeland used to communicate with the beneficiaries.

[26] I am satisfied that lawyer Kneeland has been duly notified of this proceeding and is evading service. Service of the application record is validated and further service to the same two email addresses will be deemed good service in this application.

Analysis

[27] To say that the story told by the applicant beneficiaries is shocking on several levels does not properly express the outrage that the story ought to evoke.

[28] For more than a decade a lawyer has apparently been holding and refusing to account for about $150,000 in trust money. Lawyer Kneeland undertook to serve her Deceased client who trusted her lawyer to carry out her testamentary wishes to distribute her estate to her grandchildren.

[29] Rather than faithfully carrying out her client’s wishes and reporting transparently as a fiduciary in accordance with her obligations as estate lawyer and Estate Trustee, the lawyer has held $150,000 and has now gone silent. She has ducked service and failed to attend this proceeding.

[30] And where is the Law Society of Ontario?

[31] The Law Society website shows that lawyer Kneeland is still a licensed lawyer although she is under administrative suspension. That usually means she owes fees to the Law Society. The website shows that there are no active discipline proceedings against the lawyer and she has no discipline history.

[32] I draw no conclusions as the Law Society of Ontario is not a party to this proceeding. It has not been notified that its conduct could part of the narrative of this case. It has not been given an opportunity to respond.

[33] But doesn’t someone, somewhere owe these beneficiaries a response?

Ms. Kneeland shall Apply to Pass her Accounts

[34] I order Ms. Kneeland to pass her accounts as Estate Trustee of the estate of Mary Jane Hockney by commencing a proper application by April 30, 2025. The fact that I have given her time to prepare her legal proceeding does not authorize Ms. Kneeland to delay a moment more in carrying out her duties to the beneficiaries and to the estate.

[35] Order to go as sought in paras. 1 (b), (c), and (d) of the Notice of Application dated September 19, 2024. This order is distinct from the orders concerning the progress of this application that follow. Ms. Kneeland should expect strict enforcement of this order that she pass her accounts forthwith.

Directions for the Remainder of this Proceeding

[36] If Ms. Kneeland intends to participate in this proceeding going forward, she is required to deliver a Notice of Appearance.

[37] Ms. Kneeland shall deliver a Notice of Appearance in accordance with the Rules of Civil Procedure on or before March 7, 2025.

[38] If Ms. Kneeland delivers a Notice of Appearance within the time ordered, counsel for the applicants may schedule a case conference with me on notice to Ms. Kneeland on a date convenient to both sides if possible. If they cannot agree on a date by March 14, 2025, then counsel for the applicants may pick a date unilaterally on any day thereafter at 8:30 a.m. by Zoom and advise me accordingly. At the case conference I will assist the parties to schedule the steps for the rest of the application.

[39] If Ms. Kneeland fails to deliver a Notice of Application by March 7, 2025, then the applicants may deliver to me in writing any further evidence on which they rely, a factum, if necessary, and a draft order for final judgment on a default basis. No further notice to Ms. Kneeland will be required if she does not appear as ordered.

[40] The scale and quantum of costs of today’s appearance, if any, are reserved to the judge who decides the final resolution of this application.

[41] The applicants may deliver a draft order to implement this endorsement for my signature without seeking approval of the form or content by Ms. Kneeland.

[42] The applicant may communicate with my office by sending emails to my Judicial Assistant.

Frederick L. Myers
Date: 2025-02-27