Court Of Appeal Summaries (December 8 ' 12, 2025)

• Published date: 18 December 2025
• 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 December 8, 2025.

In B.L.T. Construction Services Inc. v. Una Pizza Napoletana Inc., the Court dismissed the appeal, upholding the finding that the appellant was jointly and severally liable for breach of trust in respect of unpaid construction invoices. His defence had been struck after years of unjustified delay, and he offered no credible explanation or arguable defence. Because he was noted in default, he was deemed to admit the facts, including that the landlords had made leasehold improvement advances to the appellant, but he did not use those funds to pay invoices for those improvements, resulting in his personal liability for breach of trust.

In Project Freeway Inc. v. ABC Technologies Inc., the Court dismissed an appeal by a vendor that had sold shares in a company to a purchaser pursuant to a Share Purchase Agreement that provided for earn-out payments over time, based on the future performance of the company. The vendor submitted that the purchaser's subsequent sale and leaseback of some assets triggered the full earn-out payment, but the Court affirmed the trial judge's contractual interpretation to the contrary. Overall, the Court emphasized its deference to the trial judge in cases involving highly technical contracts which implicate only the immediate contracting parties and involve issues of mixed fact and law. The standard of review of the trial judge's contractual interpretation was palpable and overriding error, and no such error was found.

In Gumbley v. Vasiliou, the Court dealt with a catastrophic brain injury following a severe asthma attack and examined whether delayed decisions by the treating physician caused the harm. The Court upheld the trial judge's findings that the physician's negligent delays in escalating care and intubating the patient more likely than not led to prolonged hypoxia and the resulting brain damage, rejecting challenges to the trial judge's evidentiary foundation and causation analysis.

In Nguyen v Pham the moving party sought an extension to file his appeal of an application judgment. The motion was opposed on the grounds that it was frivolous and part of a pattern of unreasonable conduct. The Court dismissed the motion, holding that the moving party's repeated procedural delays and non-compliance with court orders made an extension not in the interests of justice and prejudicial to the respondent. The moving party's proposed appeal lacked merit, as it merely attacked discretionary, well‑reasoned findings on striking pleadings, occupation rent, adjustments, and costs that were entitled to deference.

In R.W. Tomlinson Limited v. Labourers' International Union of North America, Local 527, the Court held that R.W. Tomlinson was required to arbitrate its dispute with the Union, as the dispute arose from the collective agreement and fell within the arbitrator's exclusive subject-matter jurisdiction. The claims of non-parties 283 Ontario and Tomlinson Environmental were not dismissed but were properly subject to a temporary stay pending arbitration, given the arbitrator's lack of personal jurisdiction and the risk of inconsistent outcomes. The appeal was allowed in part.

Wishing everyone an enjoyable weekend.

Table of Contents

Civil Decisions

B.L.T. Construction Services Inc. v. Una Pizza Napoletana Inc., 2025 ONCA 849

Keywords: Contracts, Construction, Breach of Trust, Civil Procedure, Striking Pleadings, Setting Aside, Default Judgment, Construction Act, R.S.O. 1990, c. C.30, s. 7, Rules of Civil Procedure, r.19.02(1)(a), Intact Insurance Company v. Kisel, 2015 ONCA 205

Mr. Zagros Management Inc. v. Yulee Developments Inc., 2025 ONCA 852

Keywords: Franchise Relationships, Commercial Leases, Notices of Default, Real Property, Validity of Notices, Landlord and Tenant, Service Requirements, Termination, Indemnity]

Project Freeway Inc. v. ABC Technologies Inc., 2025 ONCA 855

Keywords: Contracts, Interpretation, Standard of Review, Share Purchase Agreements, Purchase Price, Earn-out Payments, Sattva Capital Corp. v. Creston Moly Corp., 2014 SCC 53, Wiener St'dtische Versicherung AG Vienna Insurance Group v. Infrassure Ltd., 2025 ONCA 20, Ontario First Nations (2008) Limited Partnership v. Ontario Lottery and Gaming Corporation, 2021 ONCA 592]

Gumbley v. Vasiliou, 2025 ONCA 851

Keywords: Torts, Medical Malpractice, Negligence, Causation, But-For-Test, Standard of Care, Acts of Omission, Evidence Act, R.S.O. 1990, c. E.23, s. 35, Clements v. Clements, 2012 SCC 32, Armstrong v. Royal Victoria Hospital, 2019 ONCA 963, Dallner v. Gladwell, 2024 ONSC 6557, Kotorashvili v. Lee, 2024 ONSC 1495, Aristorenas v. Comcare Health Services (2006), 83 O.R. (3d) 282 (C.A.), Sacks v. Ross, 2017 ONCA 773, Beldycki Estate v. Jaipargas, 2012 ONCA 537, Hasan v. Trillium Health Centre (Mississauga), 2024 ONCA 586, Campbell v. Hasan, [2024] S.C.C.A. No. 402, Chasczewski v. 528089 Ontario Inc. (Whitby Ambulance Service), 2012 ONCA 97, Subramaniam v. Public Prosecutor, [1956] 1 W.L.R. 965, R. v. Rosik, [1971] 2 O.R. 47, R. v. Wildman (1981), 60 C.C.C. (2d) 289, Barker v. Montfort Hospital, 2007 ONCA 282, Barker v. Dervish, [2007] S.C.C.A. No. 299, Robitaille v. Anspor Construction Ltd. (2002), 161 O.A.C. 96 (C.A.), K.K. v. M.M., 2021 ONSC 3975, Parliament et al v. Conley and Park, 2019 ONSC 2951, L. (B.) v. Saskatchewan (Ministry of Social Services), 2012 SKCA 38, Setak Computer Services Corporation Ltd. v. Burroughs Business Machines Ltd. et. al. (1977), 15 O.R. (2d) 750, Bruno v. Dacosta, 2020 ONCA 602, R. v. Evans, [1993] 3 S.C.R. 653, Fleury (Estate) v. Kassim, 2022 ONSC 2464, Benhaim v. St. German, 2016 SCC 48, Hanson-Tasker v. Ewart, 2023 BCCA 463, Ghiassi v. Singh, 2018 ONCA 764, Goodwin v. Olupona, 2013 ONCA 259, Girao v. Cunningham, 2020 ONCA 260, Blake v. Dominion of Canada General Insurance Company, 2015 ONCA 165, Adderly v. Bremner, [1968] 1 O.R. 621 (H.C.), McGregor v. Crossland, 1994 CanLII 388, White Burgess Langille Inman v. Abbott and Haliburton Co., 2015 SCC 23, R. v. Marquard, [1993] 4 S.C.R. 223, Westerhof v. Gee Estate, 2015 ONCA 206, Hacopian-Armen Estate v. Mahmoud, 2021 ONCA 545, Calin v. Calin, 2021 ONCA 558

Nguyen v. Pham, 2025 ONCA 858

Keywords: Family Law, Civil Procedure, Motions, Extension of Time, Delay, Frivolous, Vexatious, Pleadings, Striking Pleadings,Occupation Rent, Costs, , Merits, Rules of Civil Procedure, J.J.W. v. K.F., 2024 ONCA 362, Lavallee v. Isak, 2022 ONCA 290, Jex v. Jiang, 2021 ONCA 160, Issasi v. Rosenzweig, 2011 ONCA 112, Enbridge Gas Distribution Inc. v. Froese, 2013 ONCA 131, Liu v. Chan, 2024 ONCA 699, Sabatino v. Posta Ital Bar Inc., 2022 ONCA 208, Roberts v. Roberts, 2015 ONCA 450, Martin v. Watts, 2020 ONCA 406, Mullin v. Sherlock, 2018 ONCA 1063, Griffiths v. Zambosco (2001), 54 O.R. (3d) 397 (C.A.)

R.W. Tomlinson Limited v. Labourers' International Union of North America, Local 527, 2025 ONCA 861

Keywords: Labour and Employment, Unions, Collective Agreements, Labour Arbitration, Jurisdiction, Personal Jurisdiction, Subject Matter Jurisdiction, Parties, Torts, Civil Procedure, Stay of Proceedings, Standard of Review, Correctness, Rules of Civil Procedure, r. 21.01(3)(a), r. 21.01(1)(b), Labour Relations Act, 1995, S.O. 1995, c. 1, Sch. A, s. 48(1), Courts of Justice Act, R.S.O. 1990, c. C.43, 2. 106, Northern Regional Health Authority v. Horrocks, 2021 SCC 42, Housen v. Nikolaisen, 2002 SCC 33, Black v. Owen, 2017 ONCA 397, Canada (Information Commissioner) v. Canada (Minister of National Defence), 2011 SCC 25, Aldo Group Inc. v. Moneris Solutions Corporation, 2013 ONCA 725, Weber v. Ontario, [1995] 2 S.C.R. 929, Re Canex Placer Ltd. and CAIMAW, Local 10, [1975] 1 Can. L.R.B.R. 269 (B.C.L.R.B.), Energy & Chemical Workers Union, Local 691 v. Irving Oil Ltd. (1983), 47 N.B.R. (2d) 205 (C.A.), Regina Police Assn. Inc. v. Regina (City) Board of Police Commissioners, 2000 SCC 14, K.A. v. Ottawa (City) (2006), 80 O.R. (3d) 161 (C.A.), Ball v. McAuley, 2020 ONCA 481, Burley v. Ontario Public Service Employees Union (2004), 133 L.A.C. (4th) 97 (Ont. S.C.), Fuller v. Beecroft, 2007 CanLII 293 (Ont. S.C.), Coté c. Saiano, [1998] R.J.Q. 1965 (C.A.), Nadeau v. Carrefour des jeunes de Montréal, [1998] R.J.D.T. 1513 (C.A.), Hart v. Roman Catholic Episcopal Corporation of the Diocese of Kingston, in Canada, 2011 ONCA 728, Giorno v. Pappas (1999), 42 O.R. (3d) 626 (C.A.), Cherubini Metal Works Ltd. v. Nova Scotia (Attorney General), 2007 NSCA 38, 253 N.S.R. (2d) 144, Soulos v. Leitch, 2005 CanLII 13790 (Ont. S.C.), Piko v. Hudson's Bay Co. (1998), 41 O.R. (3d) 729 (C.A.), Ruscetta v. Graham (1998), 36 C.C.E.L. (2d) 177 (Ont. C.A.), Dwyer v. Canada Post Corp., 1997 CanLII 1110 (Ont. C.A.), Trial Lawyers Association of British Columbia v. British Columbia (Attorney General), 2014 SCC 59, Bremer Vulkan Schiffbau und Maschinenfabrik v. South India Shipping Corporation Ltd., [1981] A.C. 909 (H.L.), Brotherhood of Maintenance of Way Employees Canadian Pacific System Federation v. Canadian Pacific Ltd., [1996] 2 S.C.R. 495, Bruce v. Cohon, 2017 BCCA 186, Bisaillon v. Concordia University, 2006 SCC 19, Skof v. Bordeleau, 2020 ONCA 729, London Life Insurance Co. v. Dubreuil Brothers Employees Assn. (2000), 49 O.R. (3d) 766 (C.A.), Reference re Code of Civil Procedure (Que.), art. 35, 2021 SCC 27, Berardinelli v. Ontario Housing Corp., [1979] 1 S.C.R. 275, O'Leary v. New Brunswick, [1995] 2 S.C.R. 967, Bohemier v. Centra Gas Manitoba Inc. (1999), 170 D.L.R. (4th) 310 (Man. C.A.), Vale Inco Newfoundland & Labrador Ltd. v. U.S.W., 2010 NLTD(G) 124, 299 Nfld. & P.E.I.R. 73, Quebec (Commission des droits de la personne et des droits de la jeunesse) v. Directrice de la protection de la jeunesse du CISSS A, 2024 SCC 43, Canada Trustco Mortgage Co. v. Canada, 2005 SCC 54, CAW-Canada v. Sun Life Assurance of Canada (2000), 135 O.A.C. 115 (C.A.), Quebec...