The Duty of Good Faith when Dealing with Pre-construction Assets and Assignments of Interest

This column was originally published on the Real Estate News Exchange (Renx.ca). An important decision from the Ontario Superior Court of Justice has affirmed two important principles: (1) Pre-construction assets should only be transferred when the builder’s consent is obtained; and (2) Parties should never lose sight of the obligation to act in good faith …

The Dire Consequences of Failing to Immediately Disclose a Settlement Agreement

If you ask most litigators which aspect of their practice keeps them awake at night, nine times out of ten, the answer will be missing a limitation period. This is a valid worry, of course. After all, if the deadline to commence a claim is missed, even by a short window, not only do our …

A Reminder to Purchasers of the True Cost of Not Closing – It’s not “Just the Deposit”

In Prowse v. Noroozi 2021 ONSC 3099 (CanLII), Justice McCarthy of the Superior Court of Justice recently granted summary judgment for $806,380.59 against a purchaser of a luxury home in King City (the “Property”) in an aborted real estate transaction. The facts in Prowse v. Noroozi are not uncommon.  The sellers listed the Property on …

Critical Ontario Appeal Decision on Preservation of Property

Preservation of property during litigation is dealt with under rule 45 of the Ontario Rules of Civil Procedure. The traditional test under rule 45 was designed for situations where the thing being preserved was the subject of the litigation, such as an asset over which ownership was disputed. This test was not appropriate for all …

The Limits to Class Action Privacy Claims in Ontario

Since the Ontario Court of Appeal’s decision in Jones v Tsige,[1] creating an Ontario version of the tort of invasion of privacy called “intrusion upon seclusion”, privacy-related class actions have emerged as a growth area. Many of these have focused on the institutional release of personal information and some have been successfully certified.[2] However, a …

Supreme Court Confirms Shareholders Cannot Sue Professional Advisors for Corporation’s Losses

Just a few weeks ago, the Supreme Court of Canada released a decision which confirmed that shareholders cannot sue third parties such as accountants or lawyers for negligent advice that causes losses to the corporation they own (Brunette v. Legualt Joly Thiffault s.e.n.c.r.l., 2018 SCC 55 (Brunette)). In this blog post I outline the Court’s …