Charity and Not-For-Profit Law - SCJ

The court heard a motion for directions regarding the disposition of settlement trust monies held following a dispute between trustees of a religious organization.

A third-party creditor sought standing and payment of the monies, arguing they were the source of the funds.

The court denied the creditor standing, finding they had no direct interest in the accounting between the trustees.

The court granted standing to the organization and the two trustees who paid the settlement monies, and directed that an accounting hearing proceed despite the organization being in receivership.

The moving party, a religious corporation, brought a motion to set aside a consent order that enforced a settlement agreement regarding unpaid loans.

The moving party argued the settlement was executed by a rogue director without board authorization and that its former counsel consented to the order against instructions.

The court dismissed the motion, finding that the director had consulted the board and obtained approval, the counsel acted on valid instructions, and there was no material change in circumstances or clear injustice to warrant setting aside the final order.

The applicants, members of the board of directors of a not-for-profit community centre and mosque, sought a declaration that the board of trustees unlawfully dissolved the board of directors and suspended two applicants.

The court found that neither the constitution nor the Corporations Act granted the trustees or the members at an emergency meeting the authority to dissolve the board or suspend members indefinitely.

The court declared the dissolution and suspensions unlawful and of no force or effect, and awarded costs to the applicants.

On competing motions for summary judgment arising from the termination of an unpaid student practicum placement, the court dismissed the plaintiff's action in its entirety.

The court held the plaintiff was an unpaid volunteer rather than an employee and therefore could not advance wrongful dismissal or contractual consequential damages claims.

It further found no viable negligence or tort claim, including no actionable duty to conduct a non-negligent investigation before terminating the volunteer arrangement, and no proof of damages.

The defendant was awarded full indemnity costs because the claim lacked merit and was pursued with improper and inflammatory allegations.

Following a settlement and court-supervised election of a temple's board of directors, the newly elected board sought the court's assistance to compel the former board to turn over management.

The applicants sought costs of $1,192.50 for the case conference, while the respondents argued for $850.

The court split the difference, awarding $1,021.25 to the applicants, payable by the individual respondents.

The court also approved the unopposed fees of the court-appointed Nominations Officer and Meeting Chair.

The applicant church sought a declaration that its single-building complex, which housed both a place of worship and a religious school, was exempt from property taxation under the Assessment Act.

The respondent assessment corporation argued that the school portions were taxable because the school was operated by a separately incorporated entity.

The court found that the church and the school formed a single patrimony, with the church controlling and dominating the school's operations.

The court held that the exemptions for a place of worship and a non-profit educational seminary applied to the school-use areas, granting the application.

The court reviewed the report of a court-appointed independent solicitor who conducted the election of directors for the Muslim Association of Milton.

Neither party objected to the report or the conduct of the election.

The court adopted the report in its entirety, confirmed the elected directors for a five-year term, and approved the solicitor's account of $17,854.45 in full, ordering the Association to pay it.

The applicant sought a declaration that the respondent's new by-law was invalid and that his removal as President under that by-law was void.

The respondent had implemented the new by-law without obtaining the required Ministerial approval under the Canada Corporations Act.

The court found the new by-law invalid and declared the previous 2005 by-law operative.

While the applicant was estopped from challenging actions taken under the shared assumption of the new by-law's validity prior to November 2012, his removal as President occurred after this period and was declared invalid.

The court ordered a fresh election under the 2005 by-law.

The applicants and respondents are trustees of a religious corporation.

The applicants signed a petition alleging improprieties by the board.

In response, the respondent trustees initiated show cause hearings to terminate the applicants' membership in the corporation.

The applicants sought an order declaring these actions unlawful.

The court granted the application, finding that the respondents acted in bad faith by using the membership termination process for the oblique purpose of removing the applicants from the board of trustees, which could only be done for lack of attendance under the bylaws.

Following a successful application determining that the respondents could not unilaterally revoke their resignations as directors of a charitable foundation, the applicants sought costs.

The court found the respondents' conduct in attempting to retake control of the foundation and removing its property to be unreasonable.

The court awarded costs to the applicants on a partial indemnity scale, fixed at $65,000 plus HST and $7,000 in disbursements.

The defendant brought a motion to strike the plaintiff's Statement of Claim, which sought to impose a resulting or constructive trust over a camp property.

The court found that the plaintiff, having been incorporated in 2011, could not maintain causes of action based on historical events that occurred prior to its incorporation.

The court struck the Statement of Claim and dismissed the action without leave to amend, but without prejudice to the commencement of a fresh proceeding under the Charities Accounting Act or the court's inherent jurisdiction over charities.

The moving party, a local resident, brought a motion for leave to intervene as an added party or friend of the court in an application concerning the sale of a charitable property operated as a tennis and aquatic club.

The main parties to the application had reached a settlement to sell the property and divide the proceeds among charitable purposes.

The court dismissed the motion to intervene, finding that while the moving party had an interest in the subject matter, her intervention would not significantly enhance the court's ability to determine the issues, as her position mirrored that of the applicants and the Public Guardian and Trustee was already involved.

Furthermore, granting intervenor status would cause undue delay and prejudice to the parties who had already reached a settlement.

The applicants sought declarations regarding the corporate governance of a non-share capital charitable corporation after two directors, who were also pastors, resigned and later attempted to revoke their resignations.

The court held that under the Canada Corporations Act and the corporation's by-laws, a director's resignation becomes effective when irrevocably sent to the corporation.

The court further held that a director cannot unilaterally revoke a resignation once it has been received and accepted by the board.

Consequently, the respondents were no longer directors and had no authority to act on behalf of the corporation.

The plaintiff, a not-for-profit corporation operating Sikh temples, sought summary judgment declaring it had 38 members and an interlocutory injunction restraining the defendants from seizing control of the temples.

The defendants claimed the membership was 1087 and sought the appointment of a monitor and auditor, alleging financial mismanagement.

The court granted summary judgment finding there were only 38 members, as the defendants' claims regarding additional members were factually unfounded, barred by delay, and precluded by estoppel.

The court continued the interlocutory injunction against the defendants, finding they had unlawfully seized control of the plaintiff, and dismissed their request for a monitor and auditor.