Court Of Appeal Summaries (March 31 ' April 4, 2025)

• Published date: 10 April 2025
• Subject Matter: Finance and Banking, Litigation, Mediation & Arbitration, Real Estate and Construction, Charges, Mortgages, Indemnities, Court Procedure, Trials & Appeals & Compensation, Construction & Planning, Real Estate, Civil Law
• Law Firm: Blaney McMurtry LLP
• Author: John Polyzogopoulos

Good afternoon.
Following are our summaries of the civil decisions of the Court of Appeal for Ontario for the week of March 31, 2025 to April 4, 2025.

In Business Development Bank of Canada v. 170 Willowdale Investments Corp., the appeal concerned the distribution of proceeds from the sale of hotel assets in a receivership. The appellant argued that RBC, an unsecured creditor, should not receive proceeds from the sale because part of the debt owed to it was not yet payable. The Court upheld the motion judge's decision and dismissed the appeal, confirming RBC's entitlement to payment.

In McKenzie-Barnswell v. Xpert Credit Control Solutions Inc. the Court upheld the trial judge's rescission of a construction contract on the basis of fraudulent misrepresentation. However, the trial judge had awarded expectation damages rather than reliance damages necessary to put the plaintiff back into the position they were before entering into the contract. The Court therefore reduced the damages award, including finding that proper amounts owing in respect of mortgage funds advanced remained owing and were not erased as a result of the fraud.

Wishing everyone an enjoyable weekend.

John Polyzogopoulos
Blaney McMurtry LLP
416.593.2953 Email

Table of Contents

Civil Decisions

Business Development Bank of Canada v. 170 Willowdale Investments Corp., 2025 ONCA 251

Keywords: Bankruptcy and Insolvency, Receiverships, Distributions, Priority, Unsecured Creditors, Civil Procedure, Orders, Interpretation, Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, s. 144, Courts of Justice Act, Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36, s. 6(8), Housen v Nikolaisen, [2002] S.C.R. 235, Penner v. Niagara (Regional Police Services Board), [2013] 2 S.C.R. 125, Fontaine v. Ontario, 2020 ONCA 688, Canada (Minister of Citizenship and Immigration) v. Vavilov, 2019 SCC 65, Urbancorp Cumberland 2 GP Inc. (Re), 2020 ONCA 197

McKenzie-Barnswell v. Xpert Credit Control Solutions Inc., 2025 ONCA 253

Keywords: Torts, Unconscionability, Fraudulent Misrepresentation, Negligence, Deceit, Conversion, Real Property, Mortgages, Liability, Remedies, Ontario Building Code, Ontario Fire Code, Unconscionable Transactions Relief Act, R.S.O. 1990, c. U.2, s. 2, Phoenix Interactive Design Inc. v. Alterinvest II Fund L.P., 2018 ONCA 98, Uber Technologies Inc. v. Heller, 2020 SCC 16, 1018429 Ontario Inc. v. FEA Investments Ltd. (1999), 179 D.L.R. (4th) 268 (Ont. C.A.), Todd Family Holdings Inc. v. Gardiner, 2017 ONCA 326, Ontario Hardwood Flooring Co. v. Dowbenko, (1957) 7 D.L.R. (2d) 111 (Ont. C.A.), Peel Law Association v. Pieters, 2013 ONCA 396, Corridor Transport Inc. v. Vittorio Junior Lentini, 2024 ONCA 773, S.M. Waddams, The Law of Contracts, 8th ed. (Toronto: Thomson Reuters, 2022)

Short Civil Decisions

Stolove v. Waypoint Centre for Mental Health Care, 2025 ONCA 246

Keywords: Crown Liability, Civil Procedure, Class Proceedings, Appeals, Interveners, Friends of the Court, Mental Health Act, R.S.O. 1990, c. M.7, Rules of Civil Procedure, r. 13.02, Stolove v. Waypoint Centre for Mental Health Care, 2024 ONSC 3639, Peel (Regional Municipality) v. Great Atlantic & Pacific Co. of Canada Ltd. (1990), 74 O.R. (3d) 164 (C.A.), Bedford v. Canada (Attorney General), 2009 ONCA 669

Hejno v. Hejno, 2025 ONCA 249

Keywords: Wills and Estates, Formal Validity, Civil Procedure, Appeals, Extensions of Time, Succession Law Reform Act, R.S.O. 1990, c. S.26, s. 21.1(1), Enbridge Gas Distribution Inc. v. Froese, 2013 ONCA 131, Darwin Construction (BC) Ltd. v. PC Urban Glenaire Holdings Ltd., 2023 BCCA 436

Kong v. Au, 2025 ONCA 252

Keywords: Corporations, Shareholders, Oppression, Remedies, Oppression Remedy

Garlicky Mediterranean Grill Inc. v. 2715762 Ontario Inc., 2025 ONCA 248

Keywords: Contracts, Real Property, Commercial Leases

Deng v. Han, 2025 ONCA 258

Keywords: Real Property, Torts, Deceit, Unjust Enrichment, Champoux v. Jefremova, 2021 ONCA 92

De Castro v. Arista Homes Limited, 2025 ONCA 260

Keywords: Contracts, Employment, Wrongful Dismissal, Reasonable Notice, Damages in Lieu of Notice, Employment Standards Act, 2000, S.O. 2000, Waksdale v. Swegon North America Inc., 2020 ONCA 391, Dufault v. Ignace (Township), 2024 ONCA 915, Wood v. Fred Deeley Imports Ltd., 2017 ONCA 158, Machtinger v. HOJ Industries Ltd., [1992] 1 S.C.R. 986

Tewari v. Hantover Canada Inc., 2025 ONCA 261

Keywords: Civil Procedure, Striking Pleadings, Frivolous, Vexatious, Abuse of Process, Rules of Civil Procedure, rr. 21.01(3)(c) and (d), 25.11

Business Development Bank of Canada v. Neural Systems Inc., 2025 ONCA 262

Keywords: Contracts, Debtor-Creditor, Civil Procedure, Summary Judgment

CIVIL DECISIONS

Business Development Bank of Canada v. 170 Willowdale Investments Corp., 2025 ONCA 251

[Zarnett, Sossin and Copeland JJ.A.]

Counsel:

D. W. Trafford, for the appellant

T. Van Klink, for the respondent The Fuller Landau Group Inc.

T. Hogan, for the respondent Royal Bank of Canada

Keywords: Bankruptcy and Insolvency, Receiverships, Distributions, Priority, Unsecured Creditors, Civil...