Ruwenzori Enterprises Ltd. v. Walji

Ruwenzori Enterprises Ltd. v. Walji

The Court granted a partial stay of the trial judge's proprietary order as it related to transfer of the Roehampton Hotel pending appeal and partially lifted the Mareva injunction to permit the appellant limited access to funds from Houston YP to pay legal expenses, finding there was an arguable ground of appeal on...

Source-derived case information.

Citation
2005 BCCA 360
Parties
Respondent/plaintiff: Ruwenzori Enterprises Ltd.; Respondent/plaintiff: Cale Holdings Limited; Respondent/plaintiff: Norsham Inc.; Appellant/defendant: Yasmin Walji; Appellant/defendant: 1118174 Ontario Limited (dba Best Western Roehampton Hotel & Suites); Appellant/defendant: 1392275 Ontario Inc. (dba Markham Hilton Gardens); Appellant/defendant: 3465632 Canada Inc. (dba Days Inn Montreal Airport); Appellant/defendant: Humble Capital Group LLC (dba Humble Hampton Inn); Appellant/defendant: YZ Enterprises Inc. (dba Classic Cleaners; dba Designamatics); Respondent/defendant: Zulfikar Walji
Court
British Columbia Court of Appeal
Jurisdiction
Canada
Judgment Date
30 June 2005
Procedural Posture
Civil Appeal / Application for Stay Pending Appeal and Expedited Scheduling
Outcome
Partial stay granted and partial variation of Mareva injunction; receiver appointment left undisturbed; expedited appeal schedule to be arranged; further submissions ordered on quantum of funds to be released.
Legal Topics
Constructive Trust, Mareva Injunction, Tracing, Receiver Appointment, Fiduciary Duty, Limitation Periods, Appeal Procedure
Source Language
english
Equity Trusts Civil Procedure Commercial Law Conflict of Laws Constructive Trust Mareva Injunction Tracing +4 more

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Parties

Ruwenzori Enterprises Ltd.

Respondent/plaintiff

Cale Holdings Limited

Respondent/plaintiff

Norsham Inc.

Respondent/plaintiff

Yasmin Walji

Appellant/defendant

1118174 Ontario Limited (dba Best Western Roehampton Hotel & Suites)

Appellant/defendant

1392275 Ontario Inc. (dba Markham Hilton Gardens)

Appellant/defendant

3465632 Canada Inc. (dba Days Inn Montreal Airport)

Appellant/defendant

Humble Capital Group LLC (dba Humble Hampton Inn)

Appellant/defendant

YZ Enterprises Inc. (dba Classic Cleaners; dba Designamatics)

Appellant/defendant

Zulfikar Walji

Respondent/defendant

Procedural Posture

Civil Appeal / Application for Stay Pending Appeal and Expedited Scheduling

  1. 1 Whether the appeal raises a serious issue to be tried
  2. 2 Whether a proprietary remedy by way of constructive trust over the Roehampton Hotel was appropriate
  3. 3 Whether the Mareva injunction should be varied to permit the appellant access to funds for legal expenses from Houston YP

Ratio Decidendi

The Court granted a partial stay of the trial judge's proprietary order as it related to transfer of the Roehampton Hotel pending appeal and partially lifted the Mareva injunction to permit the appellant limited access to funds from Houston YP to pay legal expenses, finding there was an arguable ground of appeal on the remedy, irreparable harm if the hotel were transferred, and that balance of convenience favoured limited relief; the Court declined to interfere with the receiver appointment at this stage and left certain details (amounts) for further submissions.

Court Disposition

Partial stay granted and partial variation of Mareva injunction; receiver appointment left undisturbed; expedited appeal schedule to be arranged; further submissions ordered on quantum of funds to be released.

Orders

  • Paragraph 2(a) of the June 4, 2004 trial order stayed pending the hearing and judgment of the appeal insofar as it permits transfer of the Roehampton Hotel and consequential transfer of assets
  • The Mareva injunction as it applies to Houston YP Hospitality Management Inc. is partially lifted to permit Ms. Walji access to funds to pay her legal expenses and to pursue the appeal, subject to further submissions on the appropriate amount