Shaan P. Tolani

The plaintiff in a proposed securities class action sought approval of a third-party funding agreement (After-the-Event insurance) under s. 33.1 of the Class Proceedings Act, 1992.

The plaintiff in a parallel British Columbia class action sought to intervene to oppose the funding, arguing the B.C. action was self-funded and therefore cheaper.

The court dismissed the motion to intervene, noting the B.C. action was languishing and there was no evidence it would actually be cheaper.

The court approved the funding agreement, finding it fair, reasonable, and in the best interests of the class, as it did not diminish the plaintiff's control over the litigation and the insurers were financially capable.

Costs of the intervention motion were awarded to the plaintiff against the proposed intervenor.

Katanga Mining Limited applied under section 17 of the Securities Act for permission to disclose confidential documents obtained during an Ontario Securities Commission investigation to its parent company, Glencore plc, for use in civil proceedings in the United Kingdom.

The Capital Markets Tribunal dismissed the application, finding that Katanga did not establish that the disclosure was in the public interest.

The Tribunal held that disclosure of information protected by section 16 for use in private civil proceedings is generally not in the public interest, and a foreign court order requiring production cannot alone satisfy the statutory public interest analysis.

In this putative securities class action arising from alleged misconduct by the former CEO of Endeavour Mining, the plaintiffs moved for an order requiring defendants to deliver statements of defence and produce insurance information by November 21, 2025.

The defendants opposed both requests, arguing that no statement of defence is required before leave to proceed is granted under the Securities Act, and that insurance information disclosure is premature.

The court dismissed both aspects of the motion, finding that prior to OSA leave being granted, the statutory claim is a nullity and therefore no defence is required, and that insurance disclosure is premature absent settlement discussions or leave being granted.

The court considered whether a dispute over the calculation of an earn-out under a Purchase and Sale Agreement (PSA) should be referred to an independent accountant, as provided in the PSA, or determined by the court.

The applicants argued that the dispute, which concerned whether certain partnership units received by the respondents should be included in the earn-out calculation, fell within the accountant’s jurisdiction.

The respondents argued the issue was a legal one for the court.

The court held that the PSA’s language and commercial context indicated the parties intended all unresolved disputed items regarding the earn-out to be determined by an independent accountant, not just calculation disputes.

The court directed the parties to submit their dispute to an independent chartered accountant in accordance with the PSA.

Katanga Mining Limited applied under s. 17(1) of the Securities Act to disclose confidential documents from an Ontario Securities Commission investigation to the internal and external counsel of its parent company, Glencore.

Glencore is a defendant in a UK civil claim and the UK Court ordered disclosure of these documents.

The Capital Markets Tribunal granted the application, finding it in the public interest to permit narrow disclosure to Glencore's counsel for the purpose of assessing relevance to the UK claim, provided the counsel sign undertakings to be bound by the confidentiality provisions of s. 16 of the Act.

The plaintiff brought a motion seeking the recognition and enforcement of a foreign arbitral award issued by CIETAC against the defendant for over $233 million CAD.

The defendant argued the motion constituted an improper partial summary judgment because the plaintiff's action also included a second stage seeking declarations against the defendant's wife regarding Ontario real properties.

The court recognized the arbitral award, finding no grounds to refuse enforcement under the International Commercial Arbitration Act, 2017, and held that partial summary judgment was appropriate as the recognition issue was discrete and would not cause delay or risk inconsistent findings.

The applicant, Tacora Resources Inc., sought approval for an Amended and Restated Debtor in Possession (DIP) financing agreement with Cargill and an extension of the CCAA Stay Period.

The Ad Hoc Group of Noteholders (AHG) opposed the Cargill DIP, proposing an alternative and seeking renegotiation of terms, including an exit fee, legal costs, and the "Offtake Condition" related to a pre-existing commercial agreement with Cargill.

The court approved the Cargill DIP and extended the stay, finding the Cargill agreement offered greater short-term stability and liquidity, was recommended by the Monitor, and did not materially prejudice other stakeholders beyond what already existed due to the pre-CCAA Offtake Agreement.

The court held that the DIP approval motion was not the appropriate forum to address the enforceability or commercial reasonableness of the Offtake Agreement itself.

In the context of CCAA proceedings, the court-appointed Monitor sought a Mareva injunction against a former executive, his company, and his spouse.

The Monitor alleged that the executive had misappropriated millions of dollars from the insolvent companies for personal use, including purchasing a yacht, private jet fractional interests, and real estate, while failing to remit significant taxes.

The court found a strong prima facie case of fraud and breach of fiduciary duty against the executive and his company, and inferred a real risk of asset dissipation given their ties to St. Lucia.

An uncapped Mareva injunction was granted against them.

However, the court found insufficient evidence of actual knowledge to establish a strong prima facie case of knowing assistance or receipt against the spouse, and instead ordered her to provide a statement of worldwide assets.

In an enforcement proceeding, the moving parties (Cormark and Kennedy) sought a summons directing a non-party (Canopy) to produce documents listed in privilege logs previously provided to Staff.

The Capital Markets Tribunal found that the documents appeared relevant to the moving parties' ability to make full answer and defence, particularly regarding Canopy's state of mind.

The Tribunal issued the summons and ordered that the documents be produced to a third-party referee to conduct a privilege review, as the logs raised questions about the validity of the solicitor-client privilege claims.

The moving party sought leave to appeal an order of Justice Barbara Conway dated September 16, 2023.

The Divisional Court dismissed the motion for leave to appeal.

Costs were fixed at $4,500 payable by the moving party to the respondent.

Nobul Technologies Inc. brought a motion for a prospective order to restrain a former director, Michael Cappuccitti, from contravening a non-disparagement provision by communicating with shareholders.

Cappuccitti had sent emails to shareholders attaching his statement of claim in a separate action against Nobul, after Nobul refused to circulate it, despite having circulated its own statement of claim against Cappuccitti.

The court found that Cappuccitti's email was not disparaging, noting it was a cover note to circulate a statement of claim with a clear caveat that allegations were unproven.

The court emphasized shareholders' right to communicate and questioned Nobul's "clean hands" in seeking the injunction.

The motion was dismissed as there was no serious issue to be tried regarding a breach of the non-disparagement clause.

The plaintiff moved to disqualify Norton Rose Fulbright LLP (NRF) from acting as lawyers of record for the K2 defendants.

The plaintiff argued that it was a current client of NRF for patent applications, and that NRF's representation of the K2 defendants in this litigation, which involved allegations that the plaintiff's core technology did not exist, created a disqualifying conflict of interest.

The court found that the two mandates were substantially related and that the bright line rule applied, rendering the advance waiver in NRF's engagement letter ineffective.

The motion to disqualify NRF was granted.

This appeal concerns the admissibility of fresh evidence in an application to set aside an arbitral tribunal's jurisdictional decision under the UNCITRAL Model Law.

The Court of Appeal for Ontario affirmed the Divisional Court's ruling that such applications are hearings de novo, allowing parties to introduce evidence not previously before the arbitral tribunal, and that the "competence-competence" principle does not limit the court's fact-finding ability in this context.

The Court dismissed the appeal, upholding the Divisional Court's decision to admit the fresh evidence.

The Court of Appeal for Ontario heard a motion to quash an appeal.

The underlying order, which was the subject of the appeal, concerned the validity of service on the appellant.

The Court determined that orders relating to the validity of service are interlocutory, and therefore, the Court of Appeal lacked jurisdiction to hear the appeal.

The motion to quash was allowed, and the appeal was quashed.

The Court noted that the appellant should not be prejudiced by the delay in bringing the matter before the Divisional Court, and counsel for the respondent agreed not to object to a timely extension of time for a motion for leave to appeal in the Divisional Court.

The plaintiff, Shanghai Lianyin Investment Co., Ltd. (SLIC), brought a motion for an interim preservation order under Rule 45.01(1) of the Rules of Civil Procedure concerning two Ontario properties registered in the name of the defendant Lichun Guo, alleging they were held in resulting trust for her husband, Charles Lu, against whom SLIC held a CAD$233 million arbitral award.

Concurrently, Ms. Guo brought a cross-motion for security for costs.

The court dismissed SLIC's preservation order motion, ruling that Rule 45.01 is not the appropriate mechanism for preventing asset dissipation before judgment where the plaintiff does not assert a legal right to the specific assets, but rather seeks to satisfy a general monetary judgment.

Such relief requires meeting the stricter test for a Mareva injunction or a certificate of pending litigation.

The court granted Ms. Guo's motion for security for costs, finding that SLIC, as an out-of-province corporation with insufficient Ontario assets, did not demonstrate a "good chance of success" on the merits of its complex resulting trust claim, particularly given the unsettled legal question in Ontario regarding a creditor's ability to enforce a judgment against property held by a spouse in resulting trust without an allegation of fraudulent conveyance.

The Joint Liquidators of Stanford International Bank Limited (SIB) appealed the dismissal of their negligence claim against The Toronto-Dominion Bank (TD Bank).

SIB was a vehicle for a massive Ponzi scheme.

The Liquidators claimed TD Bank was negligent in providing correspondent banking services by failing to detect and protect SIB from insider abuse.

The Court of Appeal upheld the trial judge's finding that TD Bank did not owe a novel duty of care to monitor SIB for internal fraud, as this fell outside the scope of TD Bank's undertaking as a correspondent bank.

The court also affirmed the trial judge's alternative finding that even if a duty existed, there was no breach of the standard of care, and that the trial judge's procedural rulings regarding witness recall were fair.

The appeal was dismissed.

The Receiver brought a motion for court approval of multiple settlement agreements resolving litigation arising from the receivership of Distinct Infrastructure Group Inc., and for a sealing order over the confidential settlement terms.

The court approved the settlements, finding them to be a fair and reasonable commercial resolution.

The court also granted the sealing order, applying the Sherman Estate test and finding that the public interest in promoting settlements and preserving commercially sensitive information outweighed the negative effects on the open court principle.

The joint liquidators of Stanford International Bank (SIB) and a group of investors brought actions against TD Bank, SIB's primary U.S. dollar correspondent bank, for knowing assistance in breach of fiduciary duty and negligence.

The plaintiffs alleged that TD Bank should have detected and prevented the massive Ponzi scheme orchestrated by SIB's owner, Allen Stanford.

The Superior Court of Justice dismissed the actions, finding that TD Bank had no actual knowledge of the fraud and was not reckless or wilfully blind.

The court also held that TD Bank did not owe a novel duty of care to protect its customer from insider abuse, and even if it did, it met the standard of care of a reasonable banker during the relevant period.