Court pierces corporate veil on alter ego theory of liability
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 ... [more] Full article
Request to Admit served during adjournment of trial allowed by court
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 ... [more] Full article
Bank cannot freeze client’s account at subsidiary absent court order
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 ... [more] Full article
Fraud victims may not enjoy priority standing in bankruptcy proceedings
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. [more] Full article