Court pierces corporate veil on alter ego theory of liability

Michael Binetti
Affleck Greene McMurtry LLP May 14th, 2012

In Chan v. City Commercial Realty Group Ltd., the court “pierced the corporate veil” to hold the principals of a real estate brokerage personally liable for the debts of their corporation. The corporate defendant, City Commercial Realty Services (Canada) Ltd. (“City 1”), had initially sued the plaintiffs in respect of a real estate transaction, which was dismissed at trial. City 1 further appealed and lost. Costs awards were ordered against City 1, which went unsatisfied. Shortly before the appeal was heard, a new real estate brokerage – City Commercial Realty Group Ltd. (“City 2”) – was established to continue the [...] Full article

Request to Admit served during adjournment of trial allowed by court

Michael Binetti
Affleck Greene McMurtry LLP April 19th, 2012

In the case of Sivaji v. Rajwani, [2011] O.J. No. 6270, 108 O.R. (3d) 478, the Ontario Superior Court of Justice allowed a Request to Admit to be served during [...] Full article

Bank cannot freeze client’s account at subsidiary absent court order

Michael Binetti
Affleck Greene McMurtry LLP April 11th, 2011

In the case of Royal Bank of Canada v. Ankur Rastogi[1] , the Ontario Court of Appeal held that RBC could not freeze the accounts of its client at its [...] Full article

Fraud victims may not enjoy priority standing in bankruptcy proceedings

David N. Vaillancourt
Affleck Greene McMurtry LLP March 17th, 2011

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. Full article