Canada Case Law

Amtim Capital Inc. v. Appliance Recycling Centers of America

Court

Court of Appeal for Ontario

The appeal was dismissed because Amtim failed to discharge the onus to prove that ARCA’s allocation of overhead breached the Governing Agreements or U.S. GAAP, the trial judge permissibly declined to draw adverse inferences given Amtim’s failure to pursue available disclosure remedies and access to records, and the trial judge’s factual findings on the adequacy and accuracy of ARCA’s records attract appellate deference.

Source excerpt

• Adverse inference
• Onus of proof
• Disclosure and production
• Allocation of overhead expenses
• U.s. gaap compliance
• Expert evidence

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Chung v. Chung

Court

Supreme Court of British Columbia

A brother misused mortgage proceeds from jointly beneficially owned properties to buy his own home. The court imposed a 45% constructive trust, awarded occupational rent, and dismissed punitive damages.

• Breach of trust
• Disgorgement
• Tracing
• Constructive trust
• Occupational rent
• Punitive damages

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The Owners, Strata Corporation KAS1490 v. 453842 B.C. Ltd. (Deri Holdings)

Court

Supreme Court of British Columbia

The court held the strata manager breached fiduciary duties by failing to account for pooled revenues and misusing funds, and pierced the corporate veil to hold Mr. Davis liable.

• Rental pool agreement
• Failure to account
• Misappropriation of pooled funds
• Piercing the corporate veil
• Appointment of administrator
• Strata fees

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Garib v. Randhawa

Court

Supreme Court of British Columbia

Supplementary reasons in a property and trust dispute ordered an accounting of receipts and expenses for the Winnipeg Street Properties and denied interest on the lost equity judgment pending that accounting.

• Constructive trust
• Beneficial ownership
• Lost equity
• Mortgage priority
• Accounting for receipts and expenses
• Interest on judgments

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ALPC Housing Solutions Inc. v. Martin

Court

Supreme Court of Nova Scotia

Kris Martin breached her fiduciary duty by repurchasing property that arose as a corporate opportunity without full disclosure and consent; Jacques Martin was liable for his knowing involvement; the appropriate remedy was an equitable accounting requiring return of the financial benefit (sale price less repurchase price) subject to proven and allowable deductions and additions including unaccounted cash ticket sales, resulting in a judgment of $324,127.39 in favor of ALPC.

Source excerpt

• Breach of fiduciary duty
• Accounting for profits
• Undisclosed corporate opportunity
• Restitution
• Third‑party liability

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Taylor v. Banicevic

Court

Supreme Court of British Columbia

The court found a 50/50 trust and joint venture in Lot 17, rejected termination and breach arguments, relied on defendant’s accounting, and awarded Taylor $160,536.48.

• Bare trust
• Joint venture
• Mortgage and refinancing
• Certificate of pending litigation
• Abuse of process
• Damages calculation

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Gadhri v. 0760815 B.C. Ltd.

Court

Supreme Court of British Columbia

The court extended a prior special costs order, required the Gadhris to post $300,000 security for special costs, and dismissed a premature accounting cross-application.

• Special costs
• Security for costs
• Assessment of costs
• Final accounting
• Service of materials
• Special-costs

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Van-Air Holdings Ltd. v. Delta Charters (1982) Inc.

Court

Supreme Court of British Columbia

A reference to the registrar over marina revenue and expenses resulted in reduced allowances for management and accounting, no electricity surcharge claim, and a global award for unrecorded moorage revenue.

• Moorage fees
• Accounting of revenues
• Reference to registrar
• Contract interpretation
• Unrecorded revenue
• Electricity surcharge

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Kruger Incorporated v. The Queen

Court

Tax Court of Canada

Mark-to-market valuation for tax purposes is permissible only where sanctioned by statute or regulation; Kruger is not a financial institution and there is no statutory entitlement to mark-to-market its OTC foreign exchange options. Kruger did carry on a trading business, purchased options may be inventory and may be valued under s.10(1)/s.1801, but written (issued) options are liabilities, not inventory. CRA administrative concessions to banks do not create a legal right. Inconsistent bank model valuations further undermine reliability of a mark-to-market claim. Accordingly appeal allowed in…

Source excerpt

• Mark to market valuation
• Derivatives
• Foreign exchange options
• Inventory valuation
• Realization principle
• Income tax act s.142.2

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C.C. Tatham & Associates Ltd. v. 2057870 Ontario Inc.

Court

Court of Appeal for Ontario

The application judge correctly held that the lease did not require standardized management or administrative fees and that, even allowing for flexibility, the landlord failed to produce sufficiently informative and reliable accounting to establish expenses chargeable to the tenant; therefore the finding that the tenant overpaid and the resulting monetary adjustment and costs order were properly made, and the appeal is dismissed.

Source excerpt

• Additional rent
• Lease interpretation
• Management/administrative fees
• Proof and accounting of expenses
• Costs award
• Standard of appellate review

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