Yuliya Mykhaylychenko

The appellants appealed a summary judgment holding them jointly and severally liable for $3.76 million after the respondent investors were defrauded in a second mortgage scheme.

The investment funds were misappropriated by employees of a law firm acting as agents for the appellants' gas station development project.

The Court of Appeal dismissed the appeal, finding no error in the motion judge's application of the summary judgment framework, his conclusion that an agency relationship existed, or his imposition of joint and several liability based on findings that the defendants worked together to deprive the investors of their funds.

Leave to appeal the substantial indemnity costs award was also denied.

The decision grants summary judgment to the plaintiffs, who were defrauded of $2.65 million in a real estate investment scheme involving a solicitor’s law firm, his office manager/mother, and an in-house mortgage broker.

The court finds the solicitor and his firm liable for breach of trust, negligence, and fiduciary duty, and holds the property company and its principals jointly and severally liable.

The court awards compensatory and punitive damages, as well as substantial indemnity costs.