In a recent decision, The Court of Appeal for Ontario clarified the circumstances under which a constructive trust remedy will be granted in favour of victims of fraud once a fraudster enters bankruptcy proceedings.

In Credifinance Securities Limited v. DSLC Capital Corp,[1] DSLC made a $400,000 loan to Credifinance. Some time later, Credifinance defaulted on the repayment of the loan. DSLC came to suspect that the loan was obtained by way of fraudulent misrepresentations.

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The Divisional Court has recently denied the Imax Corporation and certain of its directors leave to appeal a lower court decision that gave a green light to a class action lawsuit by certain of IMAX’s former shareholders.

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A judge of the Ontario Superior Court of Justice’s Commercial List recently approved a plan of arrangement that eliminated the dual class share structure at Magna International Inc. (“Magna”) and in the process provided a large payout to its former controlling shareholder. Magna is in the business of developing and manufacturing automotive systems, components, and [...]

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In a recent decision, a five judge panel of the Court of Appeal for Ontario revised the legal test to be applied when the Ontario courts are asked to assume jurisdiction over a foreign defendant. The Court’s decision in Van Breda v. Village Resorts Ltd. clarifies the applicable legal principles and should provide greater guidance to Ontario courts on whether and when they can properly take jurisdiction over foreign defendants.

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In a pair of decisions released the same day, Justice Katherine van Rensburg of the Ontario Superior Court of Justice became the first judge to consider the statutory remedy created under section 138.3 of the Ontario Securities Act (the “Act”) for shareholders of public companies who suffer damages from public company misrepresentations on the secondary securities market in documents such as annual financial statements and other public documents.

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