Court Of Appeal Summaries (June 16-20, 2025)

• Published date: 25 June 2025
• Subject Matter: Corporate/Commercial Law, Litigation, Mediation & Arbitration, Real Estate and Construction, Family and Matrimonial, Corporate and Company Law, Contracts and Commercial Law, Family Law, Arbitration & Dispute Resolution, Trials & Appeals & Compensation, Libel & Defamation, Real Estate, Landlord & Tenant - Leases, Civil Law
• Law Firm: Blaney McMurtry LLP
• Author: John Polyzogopoulos

Following are our summaries of the civil decisions of the Court of Appeal for Ontario for the week of June 16, 2025.

In James Bay Resources Limited v. Mak Mera Nigeria Limited, the Court set aside an award of damages for breach of contract and defamation. The trial judge had awarded damages for the reimbursement of payments made under agreements to assist James Bay in securing oil and gas contracts in Nigeria, after James Bay was unsuccessful in securing such contracts. The Court held that the payments were not contingent on business success. The trial judge had also awarded substantial damages for defamation after the appellant had made negative comments about James Bay to the Nigerian government. The Court set aside those damages (other than a nominal amount), finding that they were unsupported and excessive.

K.K. v. M.M. was a high-conflict family case culminating in a dispute over trial and pre-trial cost awards, as well as the rare use of a discretionary stay under s. 106 of the Courts of Justice Act. The Court of Appeal was split in its decision. It upheld the full recovery trial costs awarded to the wife due to the husband's "extreme bad faith". However, the Court diverged on the trial judge's order staying prior pre-trial costs awards that had been made in the husband's favour and had remained unpaid by the time of trial. The majority set aside the stay of the pre-trial cost orders. It did not wish to encourage litigants to defer paying costs orders in the hopes that they would be stayed at a later date. In dissent, MacPherson J.A. would have upheld the trial judge's stay of the pre-trial costs orders.

In a rare event, in Stamford Kiwanis Non-Profit Homes Inc. v. Municipal Property Assessment Corporation, a five-member panel of the Court set aside the Court's previous 1998 decision in Religious Hospitallers of St. Joseph Housing Corp. v. Regional Assessment Commissioneras having been wrongly decided. The issue was whether the appellant was entitled to a property tax exemption of s. 3(1)12(iii) of the Assessment Act, on the basis that it served the poor by offering rent-geared-to-income at below market rent. Under Religious Hospitallers, the appellant did not qualify for the exemption. The Court reviewed other case law and determined that Religious Hospitallers had, itself, failed to follow precedent and had since been largely ignored by the courts and had never been affirmed again by the Court. These, among other reasons, justified in setting it aside.

In 100 Bloor Street West Corporation v. Barry's Bootcamp Canada Inc., the Court dismissed 100 Bloor's main appeal on the issue of calculating its tenant's realty tax allocation, but allowed the appeal on costs.

In Dunford v. Hamilton-Wentworth District School Board, the Court dismissed the appeal from a trial judge's dismissal of a claim against a hospital for vicarious liability for sexual abuse by a doctor affiliated with the hospital who had operated his own school. The Court agreed with the trial judge's finding that the hospital did not have a sufficiently close relationship with the tortfeasor doctor, who was not employed by the hospital, and therefore the two-pronged test for vicarious liability was not met, and the policy considerations behind imposing such liability were absent.

In McIlwain v Len's Cove Marina Ltd., the Court allowed the Marina's appeal and set aside the default judgment against it. The Court emphasized that the factors in the Mountain View test are not to be weighed equally, but rather, that the central issue on such motions is whether the interests of justice favour granting the order, even if some factors are completely absent. Courts are also not to delve into the factual merits of any defence on such motions or make factual findings.

In Ritson Division Retail GP Limited v. 2562583 Ontario Inc. (Meltwich Food Co.), the Court dismissed an appeal from summary judgment against a franchisee that had defaulted on its lease with the landlord. The franchisor had guaranteed the lease, settled with the landlord and then successfully obtained summary judgment against the franchisee on its crossclaim for the amounts owing to the landlord under the settlement.

In Farmer v. Farmer, the Court dismissed an appeal from an application for an estate trustee and attorney for property to pass accounts and repay improperly taken compensation to the estate.

Other topics included the striking of documents from an Appeal Book and Compendium that were not before the court below.

Wishing everyone an enjoyable weekend.

Table of Contents

Civil Decisions

James Bay Resources Limited v. Mak Mera Nigeria Limited, 2025 ONCA 448

Keywords: Contract, Interpretation, Torts, Defamation, Libel, Damages, 101100002 Saskatchewan Ltd. v. Saskatoon Co-operative Association Limited, 2022 SKCA 12, Anglo-Cyprian Trade Agencies Ltd. v. Paphos Wine Industries Ltd., [1951] 1 All E.R. 873 (K.B.), Callidus Capital Corporation v. McFarlane, 2017 ONCA 626, Barrick Gold Corporation v. Lopehandia (2004), 71 O.R. (3d) 416 (C.A.), Canadian Pacific Hotels Ltd. v. Bank of Montreal, [1987] 1 S.C.R. 711, Earthco Soil Mixtures Inc. v. Pine Valley Enterprises Inc., 2024 SCC 20, First National Financial GP Corporation v. Golden Dragon Ho 10 Inc. and Golden Dragon Ho 11 Inc., 2022 ONCA 621, Grossman v. CFTO-TV Ltd. (1982), 39 O.R. (2d) 498 (C.A.), Hill v. Church of Scientology of Toronto, [1995] 2 S.C.R. 1130, John v. MGN Ltd., [1997] Q.B. 586 (Eng. C.A.), King v. Operating Engineers Training Institute of Manitoba Inc., 2011 MBCA, Lewis v. Daily Telegraph Ltd., [1963] 2 All E.R. 151 (H.L.), Malak v. Hanna, 2023 BCSC 1337, M.J.B. Enterprises Ltd. v. Defence Construction(1951) Ltd., [1999] 1 S.C.R. 619, Langille v. McGrath(2001), 243 N.B.R. (2d) 360 (C.A.), Rai v. Bholowasia, [2015] EWHC 382 (Eng. Q.B.), Ratzen v. Mirror Group Newspapers(1986) Ltd., [1994] Q.B. 670 (Eng. C.A.), Reardon Smith Line v. Hansen-Tangen, [1976] 3 All E.R. 570 (H.L.), Sattva Capital Corp. v. Creston Moly Corp., 2014 SCC 53, Second Cup Ltd. v. Eftoda, 2006 CanLII 26174 (ON SC), Singh v. Doad, [1990] A.J. No. 240 (Alta. Q.B.), Skafco Ltd. v. Abdalla, 2020 ONSC 136, United Soils Management Ltd. v. Mohammed, 2019 ONCA 128, Valley Traffic Systems Inc. v. Malak, 2024 BCCA 370, Walker v. CFTO Ltd. (1987), 59 O.R. (2d) 104 (C.A.), Carter-Ruck, Libel and Slander, 3rd ed., London: Butterworths, 1985, Jamie Cassels, Remedies: The Law of Damages, Toronto, Irwin Law, 2000

K.K. v. M.M., 2025 ONCA 446

Keywords:Family Law, Civil Procedure, Orders, Costs, Full Recovery, Bad Faith, Stay of Proceedings, Procedural and Natural Justice, Reasonable Apprehension of Bias, Leave to Appeal, Courts of Justice Act, R.S.O. 1990, c. C.43, s. 106, Family Law Rules, O. Reg. 114/99, rr. 24 and 25, Yukon Francophone School Board, Education Area #23 v. Yukon (Attorney General), 2015 SCC 25, Canadian Tire Corporation, Limited v. Eaton Equipment Ltd., 2024 ONCA 25, Mobile Mini Inc. v. Centreline Equipment Rentals Ltd.(2004), 190 O.A.C. 149 (C.A.), Cao v. Monkhouse Law Professional Corporation, 2024 ONSC 196, Peerenboom v. Peerenboom, 2020 ONCA 240, Buttarazzi v. Buttarazzi(2009), 84 R.F.L. (6th) 240 (Ont. S.C.), RJR-MacDonald Inc. v. Canada (Attorney General), [1994] 1 S.C.R. 311, 1247902 Ontario Inc. v. Carlisle Power Systems Ltd., [2003] O.J. No. 6300 (Div. Ct.), Rushton v. Cuff, 2020 ONSC 490, Armstrong v. Armstrong, 2016 ONSC 126, Manabat v. Smith, 2018 ONSC 4181, Cameron v. Cameron, 2018 ONSC 6823

Stamford Kiwanis Non-Profit Homes Inc. v. Municipal Property Assessment Corporation, 2025 ONCA 450

Keywords:Municipal Law, Statutory Interpretation, Property Tax, Assessments, Exemptions, Charities and Non-profit Philanthropic Corporations, Civil Procedure, Stare Decisis, Assessment Act, R.S.O. 1990, c. A.31, s. 46, s. 3(1)12(iii), Housing Services Act, 2011, S.O. 2011, c. 6, Sched.1, Taxation Act, 2007, S.O. 2007, c. 11, Sched. A , Religious Hospitallers of St. Joseph Housing Corp. v. Regional Assessment Commissioner(1998), 42 O.R. (3d) 532 (C.A.), Commissioners for Special Purposes of Income Tax v. Pemsel, [1891] A.C. 531, Stouffville (Village) (Assessment Commissioner) v. Mennonite Home Assn. of York County, [1973] S.C.R. 189, Stamford Kiwanis Non-Profit Homes Inc. v. Municipal Property Assessment Corporation, 2022 ONSC 6392, Stamford Kiwanis Non-Profit Homes Inc. v. Municipal Property Assessment Corp., 2023 ONSC 6625 (Div. Ct.), Canada (Attorney General) v. Bedford, 2013 SCC 72, Québec (Communauté urbaine) v. Notre-Dame de Bon-Secours, [1994] 3 S.C.R. 3, City of London v. Byron Optimist Sports Complex Inc.(1983), 23 M.P.L.R. 10 (Ont. C.A.), R. v. Kirkpatrick, 2022 SCC 33, David Polowin Real Estate Ltd. v. Dominion of Canada General Insurance Company (2005), 76 O.R. (3d) 161 (C.A.), Canada (Attorney General) v. Power, 2024 SCC 26, John Howard Society of Saskatchewan v. Saskatchewan (Attorney General), 2025 SCC 6, Toronto Standard Condominium Corporation No. 1628 v. Toronto Standard Condominium Corporation No. 1636, 2020 ONCA 612, Stubart Investments Ltd. v. The Queen, [1984] 1 S.C.R. 536, Golden v. The Queen, [1986] 1 S.C.R. 209, Ottawa Salus Corp. v. Municipal Property Assessment Corp.(2004), 69 O.R. (3d) 417 (C.A.), Rizzo & Rizzo Shoes Ltd. (Re), [1998] 1 S.C.R. 27, Bell ExpressVu Limited Partnership v. Rex, 2002 SCC 42, Religious Hospitallers of St. Joseph of Cornwall Corp. v. Regional Assessment Commissioner(1998), 42 O.R. (3d) 539 (C.A.), Joie de Vivre" Inc. v. Niagara Falls (City)(1988), 41 M.P.L.R. 90 (Ont. Dist. Ct.), Fernandes v. Araujo, 2015 ONCA 571, Causeway Foundation v. Ontario Property Assessment Corp., Region No. 3(2004), 235 D.L.R. (4th) 754 (Ont. C.A.), Mackay Homes v. North Bay (City)(2005), 6 M.P.L.R. (4th) 44 (Ont. S.C.), St. Catherines Seniors Apartments Phase Three Inc. v. Municipal Property Assessment Corporation, 2015 ONSC 3896, London Jewish Community Village v. The Municipal Property Assessment Corporation, Region 23 et...