Court Of Appeal Summaries (February 23 ' 27, 2026)

• Published date: 06 March 2026
• Subject Matter: Litigation, Mediation & Arbitration, Real Estate and Construction, Family and Matrimonial, Insolvency/Bankruptcy/Re-Structuring, Insolvency/Bankruptcy, Family Law, Court Procedure, Trials & Appeals & Compensation, Real Estate, Wills/ Intestacy/ Estate Planning
• 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 February 23, 2026.

In Lalli v Lalli, the Court allowed an appeal from the trial judge's dismissal of a resulting trust claim. The dissent would have dismissed the appeal. The trial judge found that there was no gratuitous transfer of funds from parents to son and wife to purchase the subject property. Instead, he found that the funds were paid to the son to discharge the father's debt to the son. The trial judge did not put any weight on the realtor's evidence supporting the father's position that his intention was to give the funds in resulting trust because the realtor had no information about the father's debt to the son and had relied only on what the father had told him. Yet, the majority found this finding of fact to have been a legal error, because where there is a resulting trust, only the transferor's intention is relevant, and the realtor's evidence on the father's intention supported the father. The majority was of the view that the trial judge should have accepted the realtor's evidence and rejected the son's evidence because the son's story of the debt owing to him was questionable because the amount of the debt he claimed owing was not exactly $55,000, but over $7,000 less than that.

The dissent would have dismissed the appeal, finding that the trial judge had found the payment of the $55,000 was to repay a debt, was therefore not gratuitous, and therefore the presumption of resulting trust was not even engaged. The realtor had no evidence on the pre-existing debt, so there was no error in not giving his evidence weight as to whether the father had repaid a debt owing to the son. It was not for the Court to revisit the trial judge's credibility assessments and overturn his findings of fact.

This commentator questions whether the majority was correct to find that the trial judge made a legal error. The finding on whether the father repaid a debt or not seemed to be a factual credibility finding, not one arising from a misapprehension of the evidence or a legal error.

Anroop v Naqvi was an estates dispute concerning whether a fourth will which disinherited the deceased's daughter-in-law and grandson who had served as his primary caregivers, should prevail over an earlier third will that provided for them. The Court allowed the appeal, holding that the application judge erred in failing to recognize suspicious circumstances surrounding the fourth will, including the drafting solicitor's conflict of interest, uncontradicted expert evidence that the testator's signature was forged, and clear indicators of undue influence given the deceased's vulnerability and the will's substantial departure from prior wills.

In Malamas v. Wey, the appellant sued her ex-husband E.W. and his parents for damages arising from alleged financial deception regarding the ownership of the family home, in a context involving intimate partner violence. The Court allowed the appeal in part, holding that the motion judge erred in dismissing the claims against E.W. However, the Court upheld the dismissal of the appellant's claims against E.W's parents, finding those claims were properly barred by a 2017 consent order that dismissed those claims.

In Aquino (Re), the Court dismissed the appeal from a bankruptcy order, holding that the Monitor had authority to bring the bankruptcy application as a judgment creditor and that the bankruptcy judge did not err in granting the order. The Court further held that a Mareva order remained in effect, as it had not merged into the prior judgment and was properly continued to prevent asset dissipation pending the bankruptcy trustee's administration of the bankrupt's assets.

In Convocation Flowers Incorporated v. Anisa Holdings Ltd., a commercial landlord's termination of a tenant's access to loading docks constituted a repudiatory breach entitling the tenant to treat the lease as at an end, move to new premises and seek damages. The tenant's pursuit of temporary relief through a without prejudice consent order providing for only temporary loading dock access did not constitute affirmation of the lease or waiver of its right to accept the repudiation later.

In Chen v. Zhang, the Court allowed an appeal from an order to extend the limitation period to make an equalization claim and held that the clear language of the divorce agreement entered into in China precluded the respondent from bringing the claim.

Wishing everyone an enjoyable weekend.

Table of Contents

Civil Decisions

Aquino (Re), 2026 ONCA 132

Keywords: Bankruptcy and Insolvency, Bankruptcy Order, Mareva Order, Monitors, Trustees in Bankruptcy, Discretion, Collateral Purpose, Stay Proceedings, Appeals, Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, ss. 2, 36.1, 42(1)(j), 43(1), 43(7), 43(10), 69.3(1), 69.4, 69.5, 193(c), Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36, ss. 36.1, Courts of Justice Act, R.S.O. 1990, c. C.43, s. 6(1)(b), Ernst & Young Inc. v. Aquino, 2021 ONSC 527, Ernst & Young Inc. v. Aquino, 2022 ONCA 202, Aquino v. Bondfield Construction Co., 2024 SCC 31, Royal Bank v. Bodanis, 2020 ONCA 185, North House Foods Ltd. (Re), 2025 ONCA 563, 2403177 Ontario Inc. v. Bending Lake Iron Group Limited, 2016 ONCA 225, First National Financial GP Corporation v. Golden Dragon HO 10 Inc., 2019 ONCA 873, Bernard v. Laurentian Bank of Canada, 2025 QCCA 1145, Canada Trustco Mortgage Co. v. Canada, 2005 SCC 54, Canada (Minister of Citizenship and Immigration) v. Vavilov, 2019 SCC 65, Cowper-Smith v. Morgan, 2017 SCC 61, B&M Handelman Investments Ltd. v. Curreri, 2011 ONCA 395, Business Development Bank of Canada v. Pine Tree Resorts Inc., 2013 ONCA 282, Medcap Real Estate Holdings Inc. (Re), 2022 ONCA 318

Malamas v. Wey, 2026 ONCA 133

Keywords: Family Law, Property, Matrimonial Home, Civil Procedure, Settlements, Orders, Summary Judgment, Limitation Periods, Discoverability, Limitations Act, 2002, S.O. 2002, c. 24, Sched. B, s. 16(1)(h.2), R. v. Lavallee, [1990] 1 S.C.R. 852, Corner Brook (City) v. Bailey, 2021 SCC 29, Uber Technologies Inc. v. Heller, 2020 SCC 16, Saskatchewan (Environment) v. Métis Nation – Saskatchewan, 2025 SCC 4, Clarke v. Clarke, [1990] 2 S.C.R. 795, Danyluk v. Ainsworth Technologies Inc., 2001 SCC 44, Dunmore v. Mehralian, 2025 SCC 20, Michel v. Graydon, 2020 SCC 24, Hryniak v. Mauldin, 2014 SCC 7, Barendregt v. Grebliunas, 2022 SCC 22, Shipton v. Shipton, 2024 ONCA 624, Deluca v. Bucciarelli, 2022 ONCA 774, R. v. Morillo, 2018 ONCA 582, R. v. Morillo, 2018 ONCA 582, Ahluwalia v. Ahluwalia, 2023 ONCA 476, R. v. Bates (2000), 146 C.C.C. (3d) 321 (Ont. C.A.), Bear Island Foundation v. Ontario (1999), 126 O.A.C. 385 (C.A.), R. v. Cunningham, 2023 ONCA 36, R. v. Fraser, 2016 ONCA 745, R. v. Kormendy, 2019 ONCA 676, Cunningham v. Moran, 2011 ONCA 476, Mega International Commercial Bank (Canada) v. Yung, 2018 ONCA 429, Johnston v. McLean, 2024 ONCA 791, R. v. Finnessey (2000), 135 O.A.C. 396 (C.A.), Choc v. Hudbay Minerals Inc., 2013 ONSC 1414, Jane Doe v. Weinstein, 2018 ONSC 1126, R. v. Bérubé (1999), 215 N.B.R. (2d) 341 (C.A.), K.M.N. v. S.Z.M., 2024 BCCA 70, R. v. Brown, 1992 ABCA 132, J.P. v. Sinclair (1997), 148 D.L.R. (4th) 472 (B.C.C.A.), Shih v. Shih, 2017 BCCA 37, Continental Appraisals Ltd. v. Air Touch Communications Ltd., 2024 BCCA 304, John Doe v. Bennett, 2002 NFCA 47, R. v. McNab, 2020 SKCA 4, McCann v. Barens, 2023 BCSC 2000, Klassen v. Epp, 2025 BCSC 1056

Chen v. Zhang, 2026 ONCA 137

Keywords: Family Law, Property, Remedies, Equalization of Net Family Property, Civil Procedure, Limitation Periods, Extension of Time, Family Law Rules, rr. 1(8)-(8.1), 2(2)-(4), 20.2(15), Family Law Act, R.S.O. 1990, c. F.3, ss. 2(8), 7(3)(a), Manchanda v. Thethi, 2016 ONCA 909

Anroop v. Naqvi, 2026 ONCA 142

Keywords: Wills and Estates, Wills, Validity, Testamentary Capacity, Suspicious Circumstances, Forgery, Undue Influence, Conflicts of Interest, Costs, Rules of Civil Procedure, r. 74.04, John Gironda et al. v. Vito Gironda et al., 2013 ONSC 4133, Vout v. Hay, [1995] 2 S.C.R. 876, Dujardin v. Dujardin Estate, 2018 ONCA 597, Ward v. Anderson Estate, 2021 ONSC 8337, Gefen Estate v. Gefen, 2022 ONCA 174, Trotter Estate, 2014 ONCA 841, McDougald Estate v. Gooderham (2005), 199 O.A.C, 203 (C.A.), Neuberger Estate v. York, 2016 ONCA 303, leave to appeal refused, [2016] S.C.C.A. No. 207, McGrath v. Joy, 2022 ONCA 119, Di Nunzio v. Di Nunzio, 2022 ONCA 889, Sawdon Estate v. Sawdon, 2014 ONCA 101, Bayford v. Boese, 2021 ONCA 533

Convocation Flowers Incorporated v. Anisa Holdings Ltd, 2026 ONCA 145

Keywords: Contracts, Interpretation, Real Property, Commercial Leases, Goodlife Fitness Centres Inc. v. Rock Developments Inc., 2019 ONCA 58, Primo Poloniato Grandchildren's Trust (Trustee of) v. Browne, 2012 ONCA 862, Sattva Capital Corp. v. Creston Moly Corp., 2014 SCC 53, Horn Ventures International Inc. v. Xylem Canada LP, 2023 ONCA 408, Spirent Communications of Ottawa Limited v. Quake Technologies (Canada) Inc., 2008 ONCA 92, Nation v. Wasausink Lands Inc. (2004), 43 B.L.R. (3d) 244 (Ont. C.A.), Lu v. Wang, 2025 ONCA 702, Ching v. Pier 27 Toronto Inc., 2021 ONCA 551, Dosanj v. Liang, 2015 BCCA 18

Lalli v. Lalli, 2026 ONCA 123

Keywords: Property Law, Remedies, Resulting Trust, Civil Procedure, Evidence, Presumption of Resulting Trust, Courts of Justice Act, R.S.O. 1990, c. C.43, s. 134(1)(a), Bosanac v. Commissioner of Taxation, [2022] H.C.A. 34 (Austl. H.C.), 405 C.L.R. 37, Kerr v. Baranow, 2011 SCC 10, Nishi v. Rascal Trucking, 2013 SCC 33, Pecore v. Pecore, 2007 SCC 17, Saylor v. Brooks (2005), 261 D.L.R. (4th) 597 (C.A.), Falsetto v. Falsetto, 2024 ONCA 149, Holtby v. Draper, 2017 ONCA 932, Schwartz v. Schwartz, 2012 ONCA 239, Nussbaum v. Nussbaum (2004), 9 R.F.L. (6th) 455 (Ont. S.C.), Andrade v. Andrade, 2016 ONCA 368, Pisarski v. Piesik, 2019 BCCA 129, Wu v. Sun, 2010 BCCA 455...