10720143 Canada Corp. v. 2698874 Ontario Inc.

10720143 Canada Corp. v. 2698874 Ontario Inc.

Appeal dismissed because the motion judge did not err: the appellants failed to act in good faith, deliberately delayed litigation and provided no affidavit evidence of a defence; the comfort letter and dispersal of $300,000 from the lawyer's trust account supported the inference that the lawyer appellants knowingly assisted Hedmann's fraud, justifying default judgment; the negligence finding was unnecessary but the fraud-based finding supports the judgment.

Citation
2023 ONCA 463
Parties
Plaintiff (respondent): 10720143 Canada Corp.; Plaintiff (respondent): Shaun Hendricks; Defendant (appellant): 2698874 Ontario Inc.; Defendant (appellant): 2708257 Ontario Inc.; Defendant (appellant): Verdant Prime Corp.; Defendant (appellant): Sean Hedmann; Defendant (appellant): Agozzino Law Professional Corporation; Defendant (appellant): Antonino Agozzino; Defendant (appellant): 2682638 Ontario Inc.
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
29 June 2023
Procedural Posture
Civil Appeal From Superior Court Default Judgment / Decision on Appeal to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Default Judgment, Setting Aside Noting in Default, Fraudulent Misrepresentation, Knowing Assistance in Fraud, Inference of Knowledge, Appeal Jurisdiction, Costs
Source Language
English
Civil Civil Procedure Fraud Professional Negligence/trust Account Default Judgment Setting Aside Noting in Default Fraudulent Misrepresentation Knowing Assistance in Fraud +3 more

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Parties

10720143 Canada Corp.

Plaintiff (respondent)

Shaun Hendricks

Plaintiff (respondent)

2698874 Ontario Inc.

Defendant (appellant)

2708257 Ontario Inc.

Defendant (appellant)

Verdant Prime Corp.

Defendant (appellant)

Sean Hedmann

Defendant (appellant)

Agozzino Law Professional Corporation

Defendant (appellant)

Antonino Agozzino

Defendant (appellant)

2682638 Ontario Inc.

Defendant (appellant)

Procedural Posture

Civil Appeal From Superior Court Default Judgment / Decision on Appeal to Court of Appeal

Legal Issues

  1. 1 Whether Court of Appeal has jurisdiction to hear appeal from order refusing to set aside noting in default and granting default judgment
  2. 2 Whether the motion judge erred in refusing to set aside the noting in default of the appellants
  3. 3 Whether the motion judge erred in granting default judgment against the appellants, including findings of fraud and negligence

Ratio Decidendi

Appeal dismissed because the motion judge did not err: the appellants failed to act in good faith, deliberately delayed litigation and provided no affidavit evidence of a defence; the comfort letter and dispersal of $300,000 from the lawyer's trust account supported the inference that the lawyer appellants knowingly assisted Hedmann's fraud, justifying default judgment; the negligence finding was unnecessary but the fraud-based finding supports the judgment.

Court Disposition

Appeal dismissed

Orders

  • Default judgment granted below upheld against defendants including Agozzino and his professional corporation
  • Finding of liability for knowingly assisting fraud against appellants upheld; negligence finding unnecessary