Canada Judgment

Court of Appeal for Ontario

Conti v. Duca

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Source document

01

Holding and result

The trial judge's factual findings rejecting any beneficial or trust interest of the appellant in the Grampian property were supported by the record and not palpably and overridingly wrong, so the appeal is dismissed; however the trial judge erred in treating respondents as completely successful and the costs awards are reduced by 20% each with specified new amounts.

Court disposition

Appeal dismissed except in relation to costs which are varied

Orders

  • Appeal dismissed
  • Reduce costs previously awarded to Joseph Duca by 20% to $9,760 payable by the appellant
  • Reduce costs previously awarded to John Duca by 20% to $3,840 payable by the appellant
  • Set costs of the appeal at $6,000 payable by the appellant
  • Direct that $6,000 be disbursed from the $6,700 paid into court for security for costs and return the balance to the appellant

02

Material facts

Parties

Massimo Conti

Appellant Counsel: Gregory Tad Alexander Gryguc

John Duca

Respondent Counsel: John Duca (acting in person)

Joseph Duca

Respondent Counsel: Joseph Duca (acting in person)

Daytona Auto Centre Limited

Respondent

Amounts and remedies

  • Original Costs Awarded to Joseph Duca at Trial: CAD 12,203.54
  • Original Costs Awarded to John Duca at Trial: CAD 4,800
  • Reduced Costs Awarded to Joseph Duca: CAD 9,760
  • Reduced Costs Awarded to John Duca: CAD 3,840
  • Costs of the Appeal: CAD 6,000
  • Security for Costs Paid Into Court: CAD 6,700
  • Monthly Payments Made by Appellant Under Arrangement: CAD 1,700

03

Procedural history

  1. Posture

    Civil Appeal / Appeal From Superior Court Judgment and Costs Order

04

Questions and positions

Legal issues

Party arguments

Applicant
The trial judge mischaracterized and failed to recite evidence supportive of the appellant's claim of a beneficial interest; no error of law alleged but factual findings were palpably and overridingly wrong and should be re-weighed
Respondent
The trial judge correctly rejected the appellant's trust claims on the evidence; respondents were successful at trial and awarded costs though their counterclaim was dismissed; appeal should be dismissed

05

Court’s reasoning

  1. 01

    Common law appellate review principles

    Appellate courts should not second-guess trial judges' findings of fact or re-weigh evidence absent palpable and overriding error

  2. 02

    Common law trust principles

    Constructive, resulting and express trusts require demonstration of the necessary elements on the evidence; purchase-money resulting trust requires tracing of contribution to purchase

  3. 03

    Civil procedure and costs jurisprudence

    Costs awards must reflect the extent of success of the parties; partial success by respondents requires adjustment of costs

06

Ratio, limits and disposition

Ratio decidendi

The trial judge's factual findings rejecting any beneficial or trust interest of the appellant in the Grampian property were supported by the record and not palpably and overridingly wrong, so the appeal is dismissed; however the trial judge erred in treating respondents as completely successful and the costs awards are reduced by 20% each with specified new amounts.

Obiter and limits

  • It is not the function of the Court of Appeal to re-weigh evidence or substitute its view for that of a trial judge on credibility and findings of fact
  • The trial judge conducted a careful review of the law and evidence though she inadvertently overlooked the respondents' lack of success on their counterclaim
  • Security for costs should be applied to satisfy appellate costs before returning any balance to the appellant

Court disposition

Appeal dismissed except in relation to costs which are varied

  • Appeal dismissed
  • Reduce costs previously awarded to Joseph Duca by 20% to $9,760 payable by the appellant
  • Reduce costs previously awarded to John Duca by 20% to $3,840 payable by the appellant
  • Set costs of the appeal at $6,000 payable by the appellant
  • Direct that $6,000 be disbursed from the $6,700 paid into court for security for costs and return the balance to the appellant

Source and reliance status

Court of Appeal for Ontario · 13 February 2026

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Judgment text

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Source document

Court of Appeal for Ontario

Judgment· 13 February 2026

2026 ONCA 104

Conti v. Duca Collection Decisions of the Court of Appeal Date 2026-02-13 Neutral citation 2026 ONCA 104 Docket numbers COA-25-CV-0417 Judges Sossin, Lorne; Copeland, Jill M.; Madsen, Lene Subject Civil Decision Content

COURT OF APPEAL FOR ONTARIO CITATION: Conti v. Duca, 2026 ONCA 104 DATE: 20260213 DOCKET: COA-25-CV-0417 Sossin, Copeland and Madsen JJ.A.

BETWEEN Massimo Conti Plaintiff (Appellant) and John Duca, Joseph Duca, and Daytona Auto Centre Limited Defendants (Respondents) Gregory Tad Alexander Gryguc, for the appellant John Duca, acting in person Joseph Duca, acting in person[1] Heard: February 5, 2026 On appeal from the judgment of Justice Janet Leiper of the Superior Court of Justice, dated March 5, 2025 and the cost order dated April 3, 2025.

REASONS FOR DECISION [1] Mr. Conti, the appellant, is an auto mechanic with experience repairing Italian sports cars. In or around 2009, John Duca, one of the respondents, hired Mr. Conti to work for his company, Daytona Auto Centre Ltd. (“Daytona”), in Canada. In December 2011, John Duca funded the purchase of a house (the “Grampian property”) to provide Mr. Conti with a place to live. Title to the Grampian property was taken by John Duca’s son, the other respondent, Joseph Duca. Mr. Conti made monthly payments of $1,700 to John Duca and paid for the Grampian property’s utilities, while Joseph Duca paid the mortgage, property tax, and insurance. This oral arrangement continued until 2017, when John Duca agreed to waive the $1,700 payments in lieu of giving Mr. Conti a raise. [2] Mr. Conti worked at Daytona until March 16, 2023, when he took a position elsewhere. He resumed making monthly payments of $1,700 and refused to vacate the Grampian property. A. Mr. Conti’s Claim of a Beneficial Interest in the Grampian Property [3] At trial, Mr. Conti claimed that he had a beneficial interest in the Grampian property, whether through an express trust, resulting trust, a purchase money resulting trust, or under the doctrine of constructive trust. The trial judge heard oral evidence of the parties as well as third parties across a four-day trial and ultimately rejected Mr. Conti’s

various trust claims. Her careful decision correctly reviews the law and comprehensively reviews the evidence. [4] On appeal, Mr. Conti argues that the trial judge simply “got it wrong”. He alleges no errors of law. Rather, he submits that a fair review of the evidence, particularly that of third parties, shows that the trial judge mischaracterized the evidence and failed to recite portions of the evidence that supported Mr. Conti’s position. He claims that had the trial judge properly weighed the evidence, she would have recognized Mr. Conti’s claims to a beneficial interest in the Grampian property. In effect, he argues that the trial judge made palpable and overriding errors in her findings of fact and mixed fact and law. [5] These arguments cannot succeed. The findings of the trial judge are well grounded in the record. It is not the function of this court to second-guess a trial judge’s fact-finding or reweigh the evidence, as Mr. Conti invites the court to do. There is simply no basis to interfere with the trial judge’s conclusion that Mr. Conti has no trust interest in the Grampian property. B. The counterclaim and costs below [6] John Duca, Joseph Duca and Daytona (collectively, the “respondents”) brought a counterclaim for higher rent from the date Mr. Conti stopped working for Daytona and damages resulting from the unauthorized installation of a water heater and

furnace. The trial judge dismissed this claim, and no appeal is taken from this decision. [7] On April 3, 2025, the trial judge awarded costs of the proceeding in favour of Joseph Duca ($12,203.54) and John Duca ($4,800). In making this determination, the trial judge noted that she had dismissed Mr. Conti’s claim and that the respondents were completely successful at trial. It appears that the trial judge inadvertently overlooked the fact that the respondents had been unsuccessful in their counterclaim, and that therefore success was, in fact, divided. [8] While the respondents’ counterclaim comprised a minor portion of the trial, it was nevertheless an error to hold that the respondents were completely successful at trial. In these circumstances, we reduce the cost awards by 20% each, with the new amounts payable by Mr. Conti as follows: Joseph Duca ($9,760) and John Duca ($3,840). C. Disposition [9] The appeal is dismissed, except in relation to costs, as set out above. [10] Costs of the appeal are set at $6,000, payable by Mr. Conti. These costs should be disbursed from the $6,700 Mr. Conti paid into court for security for costs, with the balance to be returned to him. “L. Sossin J.A.” “J. Copeland J.A.” “L. Madsen J.A.” [1] Mr. Sergio Grillone, who intervened in the proceedings below, observed the hearing.

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