What is an Order for Security for Costs? Granting a motion for security for costs is a discretionary remedy of the court under the Rules of Civil Procedure (the “Rules“) in favour of the defendant. The defendant will bring a motion requesting an order that the plaintiff must post security for the defendant’s litigation costs […]
Category Archives: Complex Corporate Commercial Litigation
Oppression Claims & The Business Judgment Rule
Oppression is defined under the Ontario Business Corporations Act as conduct that is “oppressive or unfairly prejudicial to or that unfairly disregards the interests of any security holder, creditor, director or officer of the corporation”. This conduct does not need to be illegal so long as it fits the definition set out in the legislation. […]
Setting Aside a Default Judgment
What is a Default Judgment? A default judgment is often granted in favour of a plaintiff when the defendant, although served, either fails to appear in court or respond to a claim within the predetermined time limit. Can a Party Successfully Have it Set Aside? Setting aside a default judgment is a discretionary remedy based […]
Judgment Debts, Fraud and Bankruptcy
Many people assume that bankruptcy protects them from all creditors, across the board, however, this is not the case. In certain circumstances, debts may still be enforced even after a discharge in bankruptcy. When a creditor sues a debtor and a judgment is awarded, this judgment may survive an assignment into bankruptcy in certain circumstances. […]
Norwich Orders as a Tool of Discovery
What is a Norwich Order? A Norwich order compels a third-party, usually innocent, to preserve and produce evidence in its possession to the moving party. It is a rare and extraordinary remedy generally only given in specific circumstances. It is a creature of equity and is a discretionary remedy. The goal is to obtain information […]
Mareva Injunctions: Freezing Assets Before Judgment
The remedy of a Mareva injunction is so named having adopted the name of the plaintiff company in a 1975 English Court of Appeal decision (Mareva Compania Naviera SA v. International Bulkcarriers SA). Such an order prohibits the dissipation of the defendant’s assets. In effect, it provides a form of pre-judgment execution and has the […]
Larger Limits for Smaller Claims
Many clients have smaller monetary disputes that initially may not seem worth the effort to enter into or continue with litigation. The practical realities are that such disputes soon eat up the legal budget. If it’s cheaper to pay than fight, you might as well pay or let it go. Is there an alternative? Ontario […]
Verbal Terms Cannot Contradict the Written Contract
Introduction We all say we know the consequences of signing a legal document. We would say it means that we have entered into a binding contract according to its terms. This is so whether we have read the terms or not. Yes, there may be defences available such as a non est factum (not my […]
The Northern Picasso and a Sale by Description
Introduction The deceased Anishinaabe visual artist Norval Morriseau was the founder of the Woodfield school of painting and became known as the Northern Picasso. He is perhaps the best known Indigenous Canadian artist of his time. The case below centres on one of his paintings, entitled “Spirit Energy of Mother Earth”, that claims to be […]
Mortgage Enforcement and Penalties
Introduction The general commercial practice for lenders is to include a contractual term imposing a greater interest rate if the loan goes into arrears. This is both an incentive and a deterrent. The borrower is motivated to keep the loan from defaulting and is, therefore, more likely to pay on time to prevent the increased […]