Green Light Solutions Corp. v. Baker

Green Light Solutions Corp. v. Baker

By accepting the plaintiff's funds into his trust account and holding them in trust without making adequate inquiries despite uncertainty about their purpose, Baker became a trustee and breached his trust obligations by disbursing the refundable deposit to others; he is therefore liable to reimburse the plaintiff $40,000 plus interest and the defendant's dismissal application is denied.

Citation
2020 BCSC 1812
Parties
Plaintiff: Green Light Solutions Corp.; Defendant: Gordon Baker; Defendant: Innasmat Lynx Inc.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
4 September 2020
Procedural Posture
Civil Summary Judgment Applications / Summary Judgment Stage (oral Reasons in Chambers)
Outcome
Plaintiff's summary judgment against Gordon Baker granted; Gordon Baker's summary dismissal application dismissed; judgment for plaintiff for $40,000 plus interest; costs to plaintiff to be assessed.
Legal Topics
Breach of Trust, Constructive Trustee, Duty to Inquire, Trust Funds Held in Solicitor's Trust Account, Costs and Interest
Source Language
English
Trusts Civil Procedure Remedies Breach of Trust Constructive Trustee Duty to Inquire Trust Funds Held in Solicitor's Trust Account Costs and Interest

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Parties

Green Light Solutions Corp.

Plaintiff

Gordon Baker

Defendant

Innasmat Lynx Inc.

Defendant

Procedural Posture

Civil Summary Judgment Applications / Summary Judgment Stage (oral Reasons in Chambers)

Legal Issues

  1. 1 Whether Gordon Baker became a trustee by receiving funds into his trust account
  2. 2 Whether Baker had a duty to make inquiries about the terms of the trust and failed to do so
  3. 3 Whether Baker breached trust by disbursing refundable deposit monies to others on instructions of his client

Ratio Decidendi

By accepting the plaintiff's funds into his trust account and holding them in trust without making adequate inquiries despite uncertainty about their purpose, Baker became a trustee and breached his trust obligations by disbursing the refundable deposit to others; he is therefore liable to reimburse the plaintiff $40,000 plus interest and the defendant's dismissal application is denied.

Court Disposition

Plaintiff's summary judgment against Gordon Baker granted; Gordon Baker's summary dismissal application dismissed; judgment for plaintiff for $40,000 plus interest; costs to plaintiff to be assessed.

Orders

  • Judgment for plaintiff against Gordon Baker in the amount of $40,000
  • Interest on the $40,000 to be calculated in accordance with the Court Order Interest Act, R.S.B.C. 1996, c. 79, from September 1, 2019