Tar Heel Investments Inc. v. H.L. Staebler Company Limited

Tar Heel Investments Inc. v. H.L. Staebler Company Limited

The trial judge's findings were inadequate to support conversion or resolve other causes of action because ownership and the nature of the books were not properly found and the application of conversion to intangible client information was not established; appellate court set aside judgment and ordered a new trial on all causes of action.

Citation
2022 ONCA 842
Parties
Plaintiff (respondent/appellant by Way of Cross Appeal): Tar Heel Investments Inc.; Defendant (appellant/respondent by Way of Cross Appeal): H.L. Staebler Company Limited; Defendant (appellant/respondent by Way of Cross Appeal): Lisa Arseneau; Defendant (appellant/respondent by Way of Cross Appeal): Debbie Sutton
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
5 December 2022
Procedural Posture
Civil Appeal and Cross Appeal From Superior Court Trial / Court of Appeal Decision Remitting Matter for New Trial
Outcome
Appeal and cross-appeal allowed; judgment below set aside; new trial ordered on all causes of action; costs of first trial reserved to trial judge; parties to bear their own costs on appeal.
Legal Topics
Conversion, Fiduciary Duty, Breach of Confidence, Breach of Contract, Duty of Loyalty, Damages, New Trial
Source Language
English
Tort Employment Law Commercial Law Equity Conversion Fiduciary Duty Breach of Confidence Breach of Contract +3 more

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Parties

Tar Heel Investments Inc.

Plaintiff (respondent/appellant by Way of Cross Appeal)

H.L. Staebler Company Limited

Defendant (appellant/respondent by Way of Cross Appeal)

Lisa Arseneau

Defendant (appellant/respondent by Way of Cross Appeal)

Debbie Sutton

Defendant (appellant/respondent by Way of Cross Appeal)

Procedural Posture

Civil Appeal and Cross Appeal From Superior Court Trial / Court of Appeal Decision Remitting Matter for New Trial

Legal Issues

  1. 1 Whether sale of a book of business constituted conversion
  2. 2 Whether employer or employee owned the books of business
  3. 3 Whether conversion tort applies to intangible information

Ratio Decidendi

The trial judge's findings were inadequate to support conversion or resolve other causes of action because ownership and the nature of the books were not properly found and the application of conversion to intangible client information was not established; appellate court set aside judgment and ordered a new trial on all causes of action.

Court Disposition

Appeal and cross-appeal allowed; judgment below set aside; new trial ordered on all causes of action; costs of first trial reserved to trial judge; parties to bear their own costs on appeal.

Orders

  • Set aside the judgment of the Superior Court of Justice dated July 19, 2021.
  • Order a new trial on all causes of action.