Xin Lu (Crystal) Li

The Court of Appeal for Ontario heard a motion to quash a motion for leave to appeal from a Superior Court decision.

The Superior Court had dismissed an application to review an arbitrator's jurisdiction decision, finding the responding parties had waived their right to object.

The Court of Appeal determined it lacked jurisdiction to hear an appeal from the application judge's order, citing s. 17(9) of the Arbitration Act, 1991, which explicitly states there is no appeal from a court's decision on a preliminary question of an arbitrator's jurisdiction.

The court found the arbitrator's jurisdiction ruling was indeed a preliminary question, despite its timing.

Consequently, the motion for leave to appeal was quashed, and costs were awarded to the moving parties.

The applicants, Melissa Taurasi and Nelda Taurasi, sought a declaration that a global charge registered by The Toronto-Dominion Bank (TD) on their properties was void, alleging duress, undue influence, lack of consideration, and absence of independent legal advice.

The TD Charge was part of a settlement agreement following a $37 million cheque kiting fraud perpetrated by StateView Homes, a company owned by the applicants' husbands.

The court dismissed the application, finding no undue influence, noting that the applicants had legal representation and received a benefit from the settlement, and that their current position contradicted their separate negligence claims against their former counsel.

This decision addresses an anti-SLAPP motion brought by Global News and its journalists to dismiss a libel suit initiated by Wenbin (Vincent) Ke, an Ontario MPP.

Mr. Ke sued after Global News published stories alleging his involvement in a Chinese government election interference scheme, based on leaks from CSIS agents.

The court found that while the reporting concerned a matter of public interest, there were grounds to believe the plaintiff's libel claim had substantial merit and that the defendants' defences of responsible communication and justification (of a lesser truth) could fail at trial.

The court weighed the public interest in protecting the plaintiff's reputation and ensuring democratic integrity against the freedom of expression, concluding that the public interest in allowing the proceeding to continue outweighed the interest in protecting the expression.

Consequently, the motion to dismiss was denied, and costs were awarded to the plaintiff.

The Joseph Lebovic Charitable Foundation (appellant) appealed the dismissal of its bankruptcy application against the Jewish Foundation of Greater Toronto (respondent).

The appellant had donated over $19 million to a Donor Advised Fund (DAF) with the respondent, which it considered an irrevocable gift.

After the founder's death, his executor sought to direct the remaining DAF funds to specific charities, which the respondent did not follow.

The appellant initiated bankruptcy proceedings, alleging the respondent ceased to meet liabilities.

The motion judge dismissed the application, finding no debt, no act of bankruptcy, and no special circumstances for a single-creditor application, and that the application was an abuse of process.

The Court of Appeal upheld the motion judge's decision, finding no palpable and overriding error of fact or errors of law, and affirmed the elevated costs award due to the abuse of process.

The defendants, a law firm and its principals, sought to vary the terms of an injunction previously granted to the plaintiff law firm.

The original injunction mandated specific distributions of legal fees from client files transferred from the plaintiff to the defendants.

The defendants requested a new distribution ratio, citing a year of financial records and the end of the plaintiff's financing of disbursements.

The court found inordinate delay in the litigation process and substantial changes in circumstances, satisfying the heavy onus required to vary an injunction.

The motion to vary the fee distribution was granted, changing the allocation to 40% for plaintiffs, 40% for defendants, and 20% into a segregated trust fund.

SPay Inc. sought leave to appeal a motion judge's decision not to stay a receiver's motion for judgment in favour of international arbitration.

The motion judge had ruled that the arbitration provisions were inoperative due to Ontario's "single proceeding model" in insolvency cases, finding SPay was not a "stranger to the bankruptcy" because its proposed set-off against Mundo Media Ltd.'s largest account receivable effectively made it a creditor.

The Court of Appeal dismissed the motion for leave to appeal, concluding that the proposed appeal lacked prima facie merit and did not raise issues of general importance.

The court affirmed that insolvency courts have broad discretion to centralize proceedings, and that a party asserting a significant set-off is not a stranger to the insolvency, thus falling under the single proceeding model.

This motion, brought by SPay Inc., sought to stay a claim by Mundo Media Ltd.'s court-appointed Receiver, arguing the dispute should proceed via arbitration in New York as per their contracts.

The Receiver claimed SPay owed Mundo $4.1 million, while SPay intended to assert a set-off.

The court declined to follow the British Columbia Court of Appeal's reasoning in Petrowest Corporation v. Peace River Hydro Partners regarding a receiver's ability to disclaim arbitration clauses.

Instead, the court applied the "single proceeding model" in insolvency, finding that SPay was not a "stranger to the bankruptcy" due to the significant receivable and SPay's intention to assert a set-off.

The court held that justice and practicality demanded the claims be resolved within the Ontario receivership proceedings, rendering the arbitration agreement inoperative under Article 8(1) of the UNCITRAL Model Law.

The motion for a stay was dismissed, and costs were awarded to the Receiver.