Stewart D. Thom

This motion concerned the priority of new home purchasers' deposits in the bankruptcy of residential real estate developers (Stateview entities).

Tarion Warranty Corporation sought declaratory relief, arguing that the deposits were subject to express or constructive trusts due to unjust enrichment, which would elevate purchasers' claims.

The court dismissed Tarion's motion, finding that purchasers' agreements contained subordination clauses giving priority to secured lenders.

The court also determined that while express trusts existed for some purchasers with early termination provisions, these were not statutory deemed trusts.

Furthermore, there was no unjust enrichment for purchasers without express trusts, as the operation of the Bankruptcy and Insolvency Act constituted a juristic reason.

The court declined to impose a remedial constructive trust, emphasizing the high bar for such remedies in insolvency proceedings and the lack of a close causal connection between the deposits and the real property proceeds.

The plaintiffs moved for summary judgment to dismiss a counterclaim filed by the defendants in September 2018, arguing it was statute-barred under the Limitations Act, 2002.

The counterclaim arose from a 2011 business asset sale dispute, with the underlying facts occurring by late 2012.

The defendants contended there was a tolling agreement or that the claim only became "appropriate" after the final dismissal of their Alberta action in June 2018.

The court rejected both arguments, finding no clear tolling agreement and that the delay was a tactical decision, not legally appropriate.

The motion for summary judgment was granted, dismissing the counterclaim as time-barred.

Water Matrix Inc. sought a declaration that a judgment debt against Anna Maria Carnevale, arising from fraud, embezzlement, misappropriation, or defalcation while acting in a fiduciary capacity, or from obtaining property by false pretenses or fraudulent misrepresentation, was not released by her bankruptcy discharge.

The court examined the pleadings, proceedings, and factual context, including a prior Mareva injunction and Ms. Carnevale's criminal conviction for theft.

The court found that the judgment debt fell within sections 178(1)(d) and (e) of the Bankruptcy and Insolvency Act, as it arose from fraudulent conduct while Ms. Carnevale was in a fiduciary position and involved obtaining property by false pretenses.

The motion was granted, declaring the debt undischargeable.

The Plaintiff, Water Matrix Inc., brought a motion for judgment in the principal amount of $1,302,377.98 plus interest, following the collapse of a settlement agreement with the Defendants, Anna Maria Carnevale, Stephen M. Cordeiro, and Cordeiro Trucking Limited.

The underlying action was a civil fraud claim against Ms. Carnevale, the Plaintiff's former corporate comptroller, for allegedly transferring over $1.2 million.

A settlement agreement under Rule 49 required the Defendants to pay $750,000 and sign a Consent to Judgment for $1,585,515.00, to be filed upon default.

The Defendants defaulted on the payment, even after a 30-day extension, and failed to provide evidence of financing or meet conditions for lifting a Mareva injunction on Ms. Carnevale's property.

The court found the Defendants breached the settlement agreement and that the Plaintiff's refusal to lift the injunction was reasonable.

Judgment was granted in favour of the Plaintiff for the full amount and costs.