Court Of Appeal Summaries (July 11, 2022 ' July 15, 2022)

Published date18 July 2022
Subject MatterFinance and Banking, Corporate/Commercial Law, Employment and HR, Insurance, Litigation, Mediation & Arbitration, Family and Matrimonial, Insolvency/Bankruptcy/Re-structuring, Charges, Mortgages, Indemnities, Financial Services, Fund Management/ REITs, Corporate and Company Law, Insolvency/Bankruptcy, Contracts and Commercial Law, Contract of Employment, Unfair/ Wrongful Dismissal, Family Law, Insurance Laws and Products, Trials & Appeals & Compensation, Franchising
Law FirmBlaney McMurtry LLP
AuthorMr John Polyzogopoulos

Good afternoon.
Following are this week's summaries of the Court of Appeal for Ontario for the week of July 11, 2022. There were many interesting cases this week.

In Humphrey v. Mene Inc., the Court allowed an appeal in part and reduced damages for wrongful dismissal from twelve months to seven as a result of the plaintiff's failure to reasonably mitigate by accepting another comparable position seven months after she had been dismissed. The awards of aggravated and punitive damages were upheld.

In Sirius Concrete Inc (Re), the Court allowed an appeal from the order of a bankruptcy judge that found that certain funds were part of the bankrupt's estate and could be distributed to creditors. There was a triable issue as to whether the claimant had a constructive trust claim over the funds, which, if successful, would take the funds out of the bankrupt estate.

In Flight (Re), another bankruptcy decision, the Court allowed an appeal from a judge's decision that permitted a claim against a trustee in bankruptcy to proceed. The matter was remitted to the court below for a determination of whether leave to bring the claim should be granted under section 215 of the Bankruptcy and Insolvency Act.

Maple Leaf Foods Inc v Ryanview Farms is a case about damages for breach of the sale of breeding pigs. The appeal was allowed in part, but not on the basis of reasonable apprehension of bias.

In Cronos Group Inc. v. Assicurazioni Generali S.p.A., the Court upheld the application judge's decision permitting an insured to extend coverage under an excess policy that mirrored the terms of a primary policy.

In 2544176 Ontario Inc. v. 2394762 Ontario Inc., the Court allowed an appeal from a judgment setting aside the sale of a property under power of sale. The fact that a mortgagee had defaulted in its obligation to provide a default statement to the mortgagor upon request did not entitle the mortgagor to set aside the sale of the property to an innocent third-party purchaser. The mortgagor's remedy was against the mortgagee for damages for breach of its obligations.

In 1734934 Ontario Inc. v. Tortoise Restaurant Group Inc., the Court dismissed an appeal from a refusal to allow the plaintiff to add a party defendant in a ten year old franchise dispute.

Table of Contents

Civil Decisions

Sirius Concrete Inc (Re) , 2022 ONCA 524

Keywords: Bankruptcy and Insolvency, Property of the Bankrupt, Property Held in Trust, Torts, Deceit, Unjust Enrichment, Remedies, Constructive Trust, Bankruptcy and Insolvency Act, RSC 1985, c. B-3, s. 67(1)(a), Ontario Securities Commission v Money Gate Mortgage Investment Corporation, 2020 ONCA 812, Credifinance Securities Limited v DSLC Capital Corp, 2011 ONCA 160, 306440 Ontario Ltd v 782127 Ontario Ltd(Alrange Container Services), 2014 ONCA 548, Moore v Sweet, 2018 SCC 52

Flight (Re) , 2022 ONCA 526

Keywords: Bankruptcy and Insolvency, Claims against Trustees, Undischarged Bankrupts, Civil Procedure, Appeals, Leave to Appeal, Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, s. 215, s. 66.11, s. 193, s. 71, s.2, Family Law Act, R.S.O. 1990, c. F.3, Lloyd W. Houlden, Geoffrey B. Morawetz and Janis P. Sarra, Bankruptcy and Insolvency Law of Canada, loose-leaf (2022-Rel. 6), 4th ed. (Toronto: Thomson Reuters, 2009), Canadian Glacier Beverage Corp. v. Barnes & Kissack Inc., 1999 CanLII 6577 (BCSC), Re 298157 Alberta Ltd., 2005 ABQB 941, Environmental Metal Works Ltd. v. Murray, Faber & Associates, 2013 ABQB 479, Mercure v. Marquette & Fils, [1977] 1 S.C.R. 547, 2403177 Ontario Inc. v. Bending Lake Iron Group Limited, 2016 ONCA 225, Romspen Investment Corporation v. Courtice Auto Wreckers Limited, 2017 ONCA 301, Business Development Bank of Canada v. Pine Tree Resorts Inc., 2013 ONCA 282, GMAC Commercial Credit Corporation - Canada v. T.C.T. Logistics Inc., 2006 SCC 35, Braich (Re), 2007 BCSC 1604, R. v. Nowegijick, [1983] 1 S.C.R. 29, R. v. Penunsi, 2019 SCC 39, Grimanis v. Harris & Partners Inc., 2009 CanLII 10673 (Ont. S.C.), The Bank of Nova Scotia v. David Allin, 2013 ONSC 7937, Society of Composers, Authors and Music Publishers of Canada v. Armitage (2000), 50 O.R. (3d) 688 (C.A.), Mpampas v. Schwartz Levitsky Feldman Inc., 2008 ONCA 581, World Class Bakers Corporation, Re, 2005 CanLII 47752 (Ont. S.C.), Re New Alger Mines Limited (1986), 54 O.R. (2d) 562 (C.A.)

Cronos Group Inc. v. Assicurazioni Generali S.p.A. , 2022 ONCA 525

Keywords: Contracts, Interpretation, Insurance, Coverage, Commercial General Liability, Directors' and Officers' Liability, Optional Extension Period, Sattva Capital Corp. v. Creston Moly Corp., 2014 SCC 53, Teal Cedar Products Ltd. v. British Columbia, 2017 SCC 32, Northwest Pipe Co. v. RLI Insurance Co., 2013 WL 3712418, Re Canada 3000 Inc. (2002), 35 C.B.R. (4th) 37 (Ont. S.C.). S.A. v. Metro Vancouver Housing Corp., 2019 SCC 4

1734934 Ontario Inc. v. Tortoise Restaurant Group Inc. , 2022 ONCA 528

Keywords: Contracts, Franchise Agreements, Civil Procedure, Amending Pleadings, Adding Parties, Delay, Abuse of process, Costs, Rules of Civil Procedure, Rule 5.03(4), Plante v. Industrial Alliance Life Insurance Co. (2003), 66 O.R. (3d) 74 (S.C.), Downtown Eatery (1993) Ltd. v. Ontario (2001), 54 O.R. (3d) 161 (C.A.), 1734966 Ontario Inc. v. Tortoise Restaurant Group Inc., 2020 ONSC 888, Klassen v. Beausoleil, 2019 ONCA 407, Belsat Video Marketing Inc. v. Astral Communications Inc. et al. (1999), 118 O.A.C. 105 (C.A.), Hamilton v. Open Window Bakery, 2004 SCC 9, St. Jean v. Cheung, 2009 ONCA 9

Humphrey v. Mene Inc. , 2022 ONCA 531

Keywords: Employment Law, Wrongful Dismissal, Termination Without Cause, Reasonable Notice, Duty of Good Faith, Damages, Mitigation, Aggravated Damages, Punitive Damages, Bardal Factors, Employment Standards Act, 2000, Bardal v. The Globe & Mail Ltd. (1960), 24 D.L.R. (2d) 140 (Ont. H.C.), Strudwick v. Applied Consumer & Clinical Evaluations Inc., 2016 ONCA 520, Honda Canada Inc. v. Keays, 2008 SCC 39, Love v. Acuity Investment Management Inc., 2011 ONCA 130, Lin v. Ontario Teachers' Pension Plan Board, 2016 ONCA 619, Red Deer College v. Michaels, [1976] 2 S.C.R. 324, Beatty v. Best Theratronics Ltd., 2015 ONCA 247, Link v. Venture Steel Inc., 2010 ONCA 144, Dussault v. Imperial Oil Limited, 2019 ONCA 448, Wallace v. United Grain Growers Ltd., [1997] 3 S.C.R. 701, Colistro v. Tbaytel, 2019 ONCA 197, leave to appeal refused, [2019] S.C.C.A. No. 173, Doyle v. Zochem Inc., 2017 ONCA 130, Ruston v. Keddco MFG. (2011) Ltd., 2019 ONCA 125, Boucher v. Wal-Mart Canada Corp., 2014 ONCA 419, Bank of Montreal v. Marcotte, 2014 SCC 55, Whiten v. Pilot Insurance Co., 2002 SCC 18, Pate Estate v. Galway-Cavendish and Harvey (Township), 2013 ONCA 669

Maple Leaf Foods Inc v Ryanview Farms , 2022 ONCA 532

Keywords: Contracts, Sale of Goods, Damages, Date of Assessment, Civil Procedure, Reasonable Apprehension of Bias, Sale of Goods Act, RSO 1990, c. S.1, s. 15 & s. 51(2), Maple Leaf Foods Inc v Ryanview Farms, 2015 ONCA 566, Rougemount Capital Inc v Computer Associates International Inc, 2016 ONCA 847, Kinbauri Gold Corp v Iamgold International African Mining Gold Corp (2004), 246 DLR (4th) 595 (Ont CA), Filice v Complex Services Inc, 2018 ONCA 625

2544176 Ontario Inc. v. 2394762 Ontario Inc. , 2022 ONCA 529

Keywords: Real Property, Doctrine of Indefeasibility of Title, Statutory Interpretation, Contracts, Mortgages, Enforcement, Power of Sale, Mortgages Act, R.S.O. 1990, c. M.40, s 22, s 35, s 36, Land Titles Act, R.S.O. 1990, c. L.5, s 99, Cranberry Cove Tower Inc. v. Monarch Trust Co., 2003 CanLII 14548 (Ont. S.C.), 1173928 Ontario Inc. v. 1463096 Ontario Inc., 2018 ONCA 669, Stanbarr Services Limited v. Metropolis Properties Inc., 2018 ONCA 244, Durrani v. Augier (2000), 50 O.R. (3d) 353, Belende v. Patel, 2009 CanLII 74 (Ont. S.C.)

Short Civil Decisions

Sparr v. Downing , 2022 ONCA 537

Keywords: Family Law, Child Support, Sparr v. Downing , 2020 ONCA 793


CIVIL DECISIONS

Sirius Concrete Inc (Re), 2022 ONCA 524

[Benotto, Zarnett and Sossin JJ.A.]

Counsel:

S. Turton, for the appellant Ayerswood Development Corporation

M. Vine and J. DiFruscia, for the respondent BDO Canada Limited, as Trustee for the Estate of Sirius Concrete Inc.

Keywords: Bankruptcy and Insolvency, Property of the Bankrupt, Property Held in Trust, Torts, Deceit, Unjust Enrichment, Remedies, Constructive Trust, Bankruptcy and Insolvency Act, RSC 1985, c. B-3, s. 67(1)(a), Ontario Securities Commission v Money Gate Mortgage Investment Corporation, 2020 ONCA 812, Credifinance Securities Limited v DSLC Capital Corp, 2011 ONCA 160, 306440 Ontario Ltd v 782127 Ontario Ltd(Alrange Container Services), 2014 ONCA 548, Moore v Sweet, 2018 SCC 52

facts:

The appellant, Ayerswood Development Corporation ("Ayerswood"), appealed the order of the bankruptcy judge, made on a motion for directions brought by the respondent, BDO Canada Limited, as trustee in bankruptcy of Sirius Concrete Inc. ("Sirius"). In particular, Ayerswood appealed from those parts of the order by which the bankruptcy judge directed that the amount of $381,578.40 (the "funds") that Ayerswood paid to Sirius on March 1, 2019, one business day before Sirius made an assignment into bankruptcy on March 4, 2019, formed part of the bankrupt estate of Sirius and was to be distributed to its creditors.

The bankruptcy judge rejected Ayerswood's position that it had a claim to a remedial or constructive trust over the funds, such that the funds were not property of Sirius that became available for distribution to creditors upon its bankruptcy, and that adjudicating this claim required a fuller evidentiary record. Ayerswood contended that payment of the funds had been induced by Sirius's deceit and constituted an unjust enrichment, and Ayerswood provided evidence about the circumstances of the payment that the bankruptcy judge described as raising a "live question as to whether Ayerswood was manipulated and duped" into paying the funds. However, the...

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