Gillani v. Karmali

Gillani v. Karmali

The trial judge erred in deciding liability on an unpleaded theory of constructive trust/trustee de son tort and, on the evidence, there was no basis to impose personal liability on the appellant; accordingly the appeal is allowed, the judgment awarding $57,000 is set aside and the action is dismissed with costs to the appellant.

Citation
2014 ONCA 325
Parties
Plaintiff (respondent): Navroz Gillani; Defendant (appellant): Shiraz Karmali
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
25 April 2014
Procedural Posture
Civil / Appeal
Outcome
Appeal allowed; trial judgment set aside; action dismissed; respondent ordered to pay appellant's costs of this appeal $24,000 inclusive.
Legal Topics
Constructive Trust, Trustee De Son Tort, Breach of Trust, Pleading Requirements, Tracing, Fiduciary Duty, Unjust Enrichment
Source Language
English
Trusts Equity Securities Civil Procedure Constructive Trust Trustee De Son Tort Breach of Trust Pleading Requirements +3 more

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Parties

Navroz Gillani

Plaintiff (respondent)

Shiraz Karmali

Defendant (appellant)

Procedural Posture

Civil / Appeal

Legal Issues

  1. 1 Whether liability based on constructive trust/trustee de son tort was properly pleaded
  2. 2 Whether the appellant breached a constructive trust or was liable as trustee de son tort
  3. 3 Whether evidence supported imposition of personal liability on a stranger to the trust

Ratio Decidendi

The trial judge erred in deciding liability on an unpleaded theory of constructive trust/trustee de son tort and, on the evidence, there was no basis to impose personal liability on the appellant; accordingly the appeal is allowed, the judgment awarding $57,000 is set aside and the action is dismissed with costs to the appellant.

Court Disposition

Appeal allowed; trial judgment set aside; action dismissed; respondent ordered to pay appellant's costs of this appeal $24,000 inclusive.

Orders

  • Set aside judgment awarding $57,000 to the respondent
  • Dismiss the action