Asset-freezing injunctions, commonly referred to as Mareva injunctions, are among the most powerful remedies available in civil litigation. They allow courts to freeze a defendant’s assets before a final judgment is rendered to prevent the dissipation of assets that could otherwise frustrate the enforcement of a future judgment. Because of the extraordinary nature of this […]
Category Archives: Asset Recovery & Enforcement
Electronic Funds Transfer Fraud: Who Bears the Loss in Ontario?
Electronic funds transfers (EFTs) have become the backbone of modern commercial transactions. Wire payments, automated clearing systems, online banking platforms, and digital authorization tools allow businesses to move substantial sums within seconds. While these systems enhance efficiency, they also create opportunities for fraud. Business email compromise schemes, phishing attacks, spoofed vendor instructions, and unauthorized wire […]
When Will Creditor Conduct Affect the Enforceability of a Guarantee?
A guarantee is often an essential part of debt financing. However, the personal liability of the person making the guarantee, or “guarantor,” may be called into question when the risk assumed by the guarantor changes because of circumstances surrounding the guarantee or transaction. What Is a Guarantee? The starting point for considering this aspect of […]
Court Bars Insurer’s Fraud-Related Claim in Receiver’s Distribution
In Ontario, all registered real estate salespeople and brokers are required to participate in the Real Estate Council of Ontario’s insurance program (see the Trust in Real Estate Services Act and regulations). This program includes “consumer deposit insurance,” which protects individuals who lose deposits due to real estate broker fraud, among other things. It is […]
Court Considers Defence of Improvident Sale to Liability Under Personal Guarantee
In Calicom Solutions Inc. v. Sunil, the Superior Court of Justice considered whether to grant summary judgment in favour of creditors that had sued defendants for liability arising under personal guarantees. One of the arguments raised by the defendants in opposing the motion was that a receiver appointed by court order had undertaken an improvident […]
Pursuing Claims Against Bankrupt Debtors
It is often thought that once a debtor makes an assignment in bankruptcy, it is no longer possible to pursue litigation against them. In some situations, this may be true. However, the Bankruptcy and Insolvency Act contains various exceptions to this general principle. This blog will outline some of those exceptions. Effect of Bankruptcy on […]
Court Calls Out Attempts at Forum Shopping
It is not uncommon for a plaintiff to commence a lawsuit in a particular jurisdiction where they believe it will result in a more favourable outcome for them or other strategic reasons. This practice is commonly known as “forum shopping.” Ontario courts have recently become more skeptical of the practice, and a recent decision helps […]
Ontario Court of Appeal Confirms Limits on Norwich Orders During Appeals
In Canadian Tire Corporation, Limited v. Eaton Equipment Ltd., the Ontario Court of Appeal addressed an increasingly relevant procedural issue: whether litigants can obtain a Norwich order—a powerful pre-trial disclosure remedy—during the appeal stage of a proceeding. The decision reinforces the principle that appellate courts are not venues for expanding the evidentiary record or revisiting […]
Court Considers Penalties Against Judgment Debtor for Contempt of Court
Enforcement against judgment debtors often requires recourse to Rule 60 of the Rules of Civil Procedure. The Rule sets out various enforcement mechanisms, including writs of seizure, sale, and garnishment. Rule 60.18 also sets out how a judgment creditor may examine a debtor about their income and property, also known as an examination in aid […]
A Primer on Garnishment and How It May Be Contested
Garnishment can be a powerful debt collection method by which a creditor can satisfy a judgment it obtains against a debtor. It is commonly used in the context of employment, where a debtor’s employer must turn over a portion of the debtor’s wages to the creditor. However, it can also be used in other contexts […]