Canada Judgment

Court of Appeal for Ontario

Lalli v. Lalli

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Source document

01

Holding and result

The Court allowed the appeal in part, declaring appellants are entitled to 50% ownership of the residential property but remitting the quantification of equity to an accounting to determine contributions to carrying costs; because the appellants achieved partial success but did not obtain the immediate 50% of the equity they sought, the court awarded costs on a partial indemnity basis ($25,000 for the appeal and $70,000 for trial), and declined to postpone trial costs pending a further leave application to the Supreme Court of Canada.

Court disposition

Appeal allowed in part; appellants awarded 50% ownership of the residential property; matter remitted for accounting; costs awarded.

Orders

  • Appellants are declared to have a 50% ownership interest in the residential property.
  • The matter is remitted to the Superior Court of Justice for an accounting to determine the parties' relative financial contributions and the quantification of equity.
  • Appellants are awarded costs of the appeal in the amount of $25,000.
  • Appellants are awarded trial costs in the amount of $70,000, all inclusive, on a partial indemnity basis.

02

Material facts

Parties

Satnam Lalli

Appellant Counsel: Pheroze Jeejeebhoy; Zenobia Romanin

Jaswinder Kaur Lalli

Appellant Counsel: Pheroze Jeejeebhoy; Zenobia Romanin

Sukhvinder Lalli

Respondent Counsel: Marryam Singh; Siyamson Pathmanathan; Tahmina Taraky

Samardeep Lalli

Respondent Counsel: Marryam Singh; Siyamson Pathmanathan; Tahmina Taraky

Amounts and remedies

  • Costs Awarded on Appeal: CAD 25,000
  • Trial Costs Awarded: CAD 70,000
  • Costs Sought by Appellants: CAD 155,000

03

Procedural history

  1. Posture

    Civil Appeal / Court of Appeal Decision

04

Questions and positions

Legal issues

Party arguments

Applicant
Appellants argued they were entitled to a 50% interest in the residential property (50% of the equity) based on contributions and equitable principles and sought costs on the basis that the result beat their offer to settle.
Respondent
Respondents argued appellants were not entitled to 50% equity, that the trial judge’s mixed result justified no costs, and that any determination of trial costs should be postponed pending their motion for leave to appeal to the Supreme Court of Canada.

05

Court’s reasoning

  1. 01

    Common law equitable principles applied by the Court of Appeal

    Equitable ownership may be declared where contributions justify a constructive or resulting trust and the court may order an accounting to quantify interests

  2. 02

    Court of Appeal practice and procedure

    An accounting is the appropriate procedure to determine parties' relative financial contributions to carrying costs and the eventual share of equity

  3. 03

    Costs principles applied by the Court of Appeal and offer to settle doctrine

    Costs are awarded on the basis of success, reasonableness and any applicable offers to settle; partial indemnity is appropriate in mixed-success cases and a party must beat an offer to recover superior costs

06

Ratio, limits and disposition

Ratio decidendi

The Court allowed the appeal in part, declaring appellants are entitled to 50% ownership of the residential property but remitting the quantification of equity to an accounting to determine contributions to carrying costs; because the appellants achieved partial success but did not obtain the immediate 50% of the equity they sought, the court awarded costs on a partial indemnity basis ($25,000 for the appeal and $70,000 for trial), and declined to postpone trial costs pending a further leave application to the Supreme Court of Canada.

Obiter and limits

  • Court declined to postpone the determination of trial costs pending respondents' motion for leave to appeal to the Supreme Court of Canada
  • Court noted appellants did not beat their offer to settle because they sought 50% of the equity but obtained a declaration of 50% ownership with valuation to follow
  • Trial judge’s initial refusal to award costs at trial was attributable to mixed success and was revisited on appeal

Court disposition

Appeal allowed in part; appellants awarded 50% ownership of the residential property; matter remitted for accounting; costs awarded.

  • Appellants are declared to have a 50% ownership interest in the residential property.
  • The matter is remitted to the Superior Court of Justice for an accounting to determine the parties' relative financial contributions and the quantification of equity.
  • Appellants are awarded costs of the appeal in the amount of $25,000.
  • Appellants are awarded trial costs in the amount of $70,000, all inclusive, on a partial indemnity basis.

Source and reliance status

Court of Appeal for Ontario · 26 March 2026

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Judgment reading view

Judgment text

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Source document

Court of Appeal for Ontario

Judgment· 26 March 2026

2026 ONCA 224

Lalli v. Lalli Collection Decisions of the Court of Appeal Date 2026-03-26 Neutral citation 2026 ONCA 224 Docket numbers COA-24-CV-1369 Judges Roberts, Lois B.; Miller, Bradley; Monahan, Patrick J. Subject Civil Decision Content

COURT OF APPEAL FOR ONTARIO CITATION: Lalli v. Lalli, 2026 ONCA 224 DATE: 20260326 DOCKET: COA-24-CV-1369 Roberts, Miller and Monahan JJ.A.

BETWEEN Satnam Lalli and Jaswinder Kaur Lalli Plaintiffs (Appellants) and Sukhvinder Lalli and Samardeep Lalli Defendants (Respondents) Pheroze Jeejeebhoy and Zenobia Romanin, for the appellants Marryam Singh, Siyamson Pathmanathan and Tahmina Taraky, for the respondents Heard: November 13, 2025 On appeal from the judgment of Justice Thomas A. Bielby of the Superior Court of Justice, dated November 18, 2024, with reasons at 2024 ONSC 6416. COSTS: REASONS FOR DECISION [1] The appellants had mixed success at trial. Their claim for an interest in two investment properties was successful, but their claim for an equitable interest in a residential property was dismissed. Accordingly, the trial judge awarded no costs at trial. [2] The appeal was allowed, in that the appellants were awarded a 50% interest in the residential property. An accounting remains necessary to determine the parties’ relative financial contributions to the carrying costs of the property beyond the provision of the initial downpayment. The appellants had sought an order from this court entitling them to 50% of the equity, but we declined to make that order on the record before us, and we remitted that issue to an accounting before the Superior Court of Justice. The appellants were awarded costs of the appeal in the amount of $25,000, and we invited written submissions on the trial costs below. [3] The

respondents requested that we postpone that determination pending their motion for leave to appeal to the Supreme Court of Canada. We are not inclined to do so and, having reviewed the written materials filed, order that the appellants are entitled to costs of trial in the amount of $70,000 all inclusive, being costs awarded on a partial indemnity basis. The appellants had sought approximately $155,000 in costs, on the basis that the result beat an offer to settle they had provided. We do not agree that the result beat their offer. The appellants were not awarded 50% of the equity of the residential property, which they sought, but 50% ownership. The value of the equity to which they will be entitled remains to be determined on the subsequent accounting.

DISPOSITION [4] The appellants are awarded trial costs on a partial indemnity basis in the amount of $70,000, all inclusive. “L.B. Roberts J.A.” “B.W. Miller J.A.” “P.J. Monahan J.A.”

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

2024 ONSC 6416 (trial judgment)

Case cited

Lalli v. Lalli, 2026 ONCA 224

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