Shaun Laubman

The plaintiff in a complex family trust dispute brought motions on the eve of trial for further documentary production, further examinations for discovery, and leave to amend her Statement of Claim.

The motions sought to introduce new allegations that the defendants covered up and settled claims of sexual misconduct against the family patriarch, Frank Stronach.

The court dismissed both motions, finding no evidence that the requested documents existed, that the new allegations were irrelevant to the pleaded claims of corporate mismanagement, and that amending the pleadings three weeks before a scheduled seven-week trial would cause non-compensable prejudice and delay.

The respondents brought a motion to stay or dismiss the application as an abuse of process, alleging the applicant failed to immediately disclose a settlement agreement with a co-respondent, failed to disclose surveillance evidence, and improperly commenced the proceeding as an application.

The court found that the applicant had made immediate and proper disclosure of the settlement agreement to both the non-settling parties and the court, and that the handling of surveillance evidence did not constitute an abuse of process.

The motion to stay was dismissed, but the court ordered the application converted into an action.

The Proposal Trustee brought a motion to compel the Proposal Sponsor to fund the Trustee's continuing work to resolve outstanding proofs of claim, specifically the Athanasoulis Claim, via a two-phase arbitration.

The Sponsor objected to funding phase 2 of the arbitration, arguing it was an improper delegation of the Trustee's duties under s. 135 of the BIA.

The court agreed with the Sponsor, finding that while phase 1 (fact-finding) was acceptable, phase 2 (final adjudication of damages) improperly delegated the Trustee's statutory responsibility to determine and value the claim.

The Sponsor was not ordered to fund phase 2 of the arbitration but remains obligated to fund the Trustee's reasonable expenses to determine the claim through an alternative process.

The plaintiffs, Andrew and Selena Stronach, brought motions to strike out portions of the defendants' Fresh as Amended Statements of Defence under Rule 25.11 of the Rules of Civil Procedure.

The plaintiffs argued that the impugned pleadings improperly referenced documents and communications that were subject to settlement privilege arising from a confidential judicial mediation.

The defendants argued that the plaintiffs had waived privilege or that an exception applied based on the justice of the case.

The court found that the mediation was subject to settlement privilege, the plaintiffs had not waived the privilege, and no exception applied.

The court granted the motions to strike the pleadings relating to the mediation.

The court also struck out portions of one defendant's pleading as scandalous, but dismissed a motion to require another defendant to reinstate a withdrawn admission.

Following the approval of an amended restructuring proposal under the Bankruptcy and Insolvency Act, two limited partner applicant groups sought costs for their participation in the proceedings.

The court declined to award costs, noting the Commercial List practice of generally not awarding costs in restructuring matters.

The court emphasized that restructuring is not a classic adversarial proceeding and that stakeholders should not be discouraged from participating by the threat of costs.

No order as to costs was made for the bankruptcy proceeding, though the court left open the possibility of addressing costs in the related civil proceedings if funds flow back to the partnership.

The debtors, YG Limited Partnership and YSL Residences Inc., sought court approval for version 2 of Amended Proposal #3 under the Bankruptcy and Insolvency Act, following the court's previous rejection of an earlier proposal.

The amended proposal addressed the court's prior concerns by treating related party claims as equity, ensuring construction lien claims did not dilute unsecured creditors' recoveries, and providing that any surplus funds would be returned to the limited partnership.

The court found the amended proposal to be reasonable, calculated to benefit the general body of creditors, and advanced in good faith, and therefore granted the order approving the proposal.

The debtors, YG Limited Partnership and YSL Residences Inc., sought court approval of a bankruptcy proposal under the Bankruptcy and Insolvency Act.

Two groups of limited partners opposed the proposal, arguing it was not reasonable, was advanced in bad faith, and improperly treated related-party advances as debt rather than equity.

The court refused to approve the proposal, finding that the related-party claims were equity claims, the proposal sponsor had improperly induced unaffected lien claimants to vote as affected creditors, and the general partner had breached its fiduciary duties by advancing a proposal designed to benefit related parties at the expense of the limited partners.

The respondent sought costs of $85,885.03 on a partial indemnity basis following the applicant's unsuccessful application for leave to appeal an arbitral award.

The applicant argued costs should be capped at $40,000.

The court considered the factors under Rule 57.01, noting the issues were of moderate complexity and the parties' costs outlines were similar.

After making a slight reduction for duplication of work and excessive time spent by lead counsel, the court awarded the respondent costs of $79,000 all-inclusive.

The plaintiffs, Andrew and Selena Stronach, sought leave to amend their respective statements of claim in two related actions concerning the management of the Stronach family business and trusts.

The defendants, including Belinda Stronach, opposed the amendments on several grounds, primarily arguing that references to a May 2020 Agreement were barred by settlement privilege.

The court found that the defendants failed to prove the May 2020 Agreement was intended to be kept confidential, and alternatively, that any privilege had been waived or an exception applied.

The court also rejected arguments that the amendments improperly withdrew admissions or were scandalous and vexatious.

Leave to amend the pleadings was granted.

The plaintiffs, a Chinese corporation and an Ontario resident, sued a Canadian law firm and two foreign defendants (a Hong Kong company and its Chinese principal) alleging breach of fiduciary duty and misuse of confidential information regarding the acquisition of shares in a mining company.

The foreign defendants moved to set aside service ex juris and to dismiss the action for lack of jurisdiction simpliciter or, alternatively, on the basis of forum non conveniens.

The Superior Court of Justice granted the motion, setting aside the service because the defendants did not reside or carry on business in Ontario and service did not comply with the Hague Convention.

The court further held it lacked jurisdiction simpliciter as there was no real and substantial connection to Ontario, and alternatively, that Ontario was forum non conveniens, with China or Hong Kong being the appropriate forum.

The defendants brought a motion to compel the plaintiff to answer 143 questions refused during her cross-examination on an affidavit filed in response to the defendants' summary judgment motion.

The summary judgment motion was based on the expiry of the limitation period.

The plaintiff had refused questions on the basis of relevance and solicitor-client privilege.

The court found that questions seeking the legal significance of material facts were not relevant to discoverability.

The court also held that the plaintiff had not waived solicitor-client privilege, as she had not voluntarily put her state of mind or legal advice in issue.

The motion to compel answers was dismissed.

The applicant landlord sought a declaration regarding the interpretation of a rent re-set clause in a 99-year commercial ground lease.

The clause required the property to be valued 'as if it were unimproved'.

The landlord argued this meant the land should be valued as if it were unencumbered and available for freehold condominium development.

The respondent tenant argued the valuation must account for legal restrictions preventing such development.

The court held that the landlord was issue estopped from re-litigating the interpretation decided in a 1990 arbitration.

Alternatively, the court found that the correct interpretation of the lease required the valuation to account for the legal encumbrances restricting the tenant's ability to develop the property.

The applicant, Brian Hamm, sought an order preventing the respondent, Gordon R. Baker, a lawyer, from disclosing the contents of a legal file to an intervenor in an ongoing litigation.

Hamm claimed that he and Baker were in a solicitor-client relationship, or a 'near client' relationship, and that Baker owed him a duty of confidentiality.

The court applied the Jeffers indicia to determine if a reasonable person would conclude a solicitor-client relationship existed.

The court found that Baker acted solely as corporate counsel for Northern Superior Industries Ltd. and for another investor, and that Hamm understood Baker was not representing his personal interests.

The application was dismissed.

Following the dismissal of the plaintiffs' claim to rectify a promissory note and the dissolution of an interim injunction, the successful defendants sought costs.

The defendants relied on contractual indemnity provisions in the promissory note and guarantee to claim full indemnity costs.

The court held that the plain language of the contracts entitled the main defendants to full indemnity costs.

The costs claimed were found to be reasonable under Rule 57.01, with a minor deduction for a defendant lawyer's time spent attending trial as a spectator.

A separate defendant was awarded partial indemnity costs.

The plaintiffs sought to rectify a promissory note, arguing that the fixed due date of December 31, 2015, did not reflect the true intent of the parties and was a mistake.

Alternatively, they argued there was a subsequent agreement to defer payment until a new financing deal was completed.

The Superior Court of Justice dismissed the plaintiffs' claims, finding that the written terms of the note accurately reflected the parties' agreement and that no subsequent agreement to defer enforcement had been reached.

The interim injunction restraining the defendants from enforcing the note was dissolved.

The applicant sought an order discharging a transformer easement registered on its property in 1965 in favour of the Crown, which was ancillary to an approach lighting easement for the Windsor Airport.

The applicant argued the easement had been abandoned or had expired by its terms.

The court found that while abandonment was not proven, the easement had expired by its own terms because technological advances, including GPS navigation and self-contained transformers in modern approach lights, rendered the stand-alone transformer obsolete.

The court ordered the easement discharged.

During an ongoing civil trial involving dealership market allocation disputes, the defendant sought permission to rely on a second supplemental expert report and to introduce maps and charts derived from previously discovered market study data.

The plaintiff argued the late expert report constituted trial by ambush and violated prior scheduling orders.

The court held that the supplemental expert opinion properly responded to new expert evidence and newly discovered data introduced during the proceedings, and its admission would not cause unfair prejudice.

The court also permitted the introduction of charts and maps derived from historical data for explanatory purposes, while refusing to authorize a new expert report from a non-designated witness responding to the opposing expert.

Following an earlier endorsement granting interlocutory injunctions concerning non‑solicitation and confidentiality, the court addressed the issue of costs of the motion.

The parties agreed on the quantum of costs at $105,000 all inclusive.

The court fixed the quantum accordingly but declined to determine liability for those costs at this stage.

Liability was reserved for the judge who will determine the final disposition of the action, to avoid prejudging potential outcomes or factual developments.

Multiple tobacco manufacturer defendants sought partial indemnity costs of approximately $300,000 after withdrawing previously scheduled motions to strike the Crown’s statement of claim in a health care cost recovery action under the Tobacco Damages and Health Care Costs Recovery Act.

The defendants argued they were the successful parties because their motions prompted extensive amendments to the pleading and that the Crown delayed notifying them of its intention to amend.

The court held that the amendments addressed only some of the alleged deficiencies and that significant legal issues remained unresolved when the defendants chose to withdraw the motions.

As a result, success on the motions was considered divided.

Exercising discretion under s. 131 of the Courts of Justice Act, the court ordered that each side bear its own costs.

The defendant franchisor brought a motion for further documentary production from the plaintiff franchisee in an $11 million dispute over dealership construction and a competing franchise.

The defendant sought construction files, financial records of related non-party corporations, and documents from the plaintiff's accountants to assess the plaintiff's damages claims.

The court ordered the plaintiff to produce additional construction documents, disclose relevant inter-company agreements, and request the voluntary production of financial statements from related non-party corporations, with leave for the defendant to bring Rule 30.10 motions if refused.