The fundamental core of a finding of fraud is the moral turpitude of the defendant. We base liability for fraud or deceit upon the idea that to lie or to deceive are morally wrong acts. Such acts, therefore, merit legal sanctions when they result in suffering by the victim. But there are also situations where fraud […]
Category Archives: Civil Fraud
The Association of Certified Fraud Examiners
Our firm has written repeatedly of instances of fraud affecting businesses in Canada, whether by external fraudsters or internal employees. The Insurance Bureau of Canada reports that fraudulent activity costs Candian businesses, including large corporations, small companies and non-profits, millions of dollars per year. Sadly, many fraudsters are even using the current health crisis related […]
Fraud Allegations & The Calculation of Costs
When a plaintiff alleges fraud and subsequently fails to sufficiently prove the allegations in court, the defence will invariably ask for increased costs. The common law in Canada is clear that where a plaintiff alleges a defendant has engaged in deceit, the court may order increased costs against the plaintiff when those claims are not […]
What Constitutes a Fraudulent Conveyance?
The recent case of Anisman v. Drabinsky is a summary judgment decision from the Ontario Superior Court (ONSC) with guidance for creditors on how to approach issues relating to discoverability and limitation periods if they suspect their debtors’ real property has been fraudulently conveyed. Debtor Transfers Property to Spouse for Nominal Amount The plaintiff, a […]
Willful Blindness and Fraud
When it comes to fraud, people sometimes think that they can claim innocence if they remain unaware of the details. However, a finding of willful blindness, or deliberate ignorance of what should be obvious, is not enough to escape liability in the case of fraudulent activities. A recent decision demonstrated that a defendant deliberately chose […]
Ontario Establishes Serious Fraud Office
This past summer the Ontario government, quietly created a new organization whose responsibility is to investigate and prosecute complex fraud cases and white-collar crime. It is known as the Serious Fraud Office, or SFO. The office is modelled after similar agencies in the United Kingdom and the United States. Its goal is to combine the […]
Extending the Time in Which to Seek Leave to Appeal
The Divisional Court (ONSC) recently dealt with this issue in Amphenol Canada Corp. v. Sundaram (2020). There the plaintiff had obtained an ex parte Mareva injunction against all of the defendants in a civil fraud matter, effectively freezing their assets. The plaintiff then sought a continuation of the injunction and was successful. One of the […]
Constructive Trustees, Fraud, and Knowing Receipt
The Supreme Court of Canada (SCC), in Citadel General Assurance Co. v. Lloyds Bank of Canada, established the three ways in which a stranger to a trust can be held liable as a constructive trustee for a breach of that trust. They are: as a trustee de son tort; for knowing assistance in a fraudulent scheme […]
Paulus v. Fleury: Resolute Advocacy or Civil Fraud?
Facts before the Court of Appeal Background: The plaintiffs and the defendant were involved in a car accident. At the pre-trial conference in their action for damages, plaintiffs’ counsel made submissions indicating he had “independent” witnesses to the collision that had resulted in injury to his clients. He described the witnesses as “good people … independent […]
Recovery for Employee Fraud
What remedies does an employer have when it discovers that it has suffered damages as the result of the fraud of one of its employees? It can certainly terminate the employee without cause. However, can it also sue the employee to recover any loss suffered or sue any third parties who benefited or participated in […]