The Court of Appeal allowed the appeal, set aside the order dismissing the application, and remitted the lease-interpretation dispute for a new hearing.
The October 17, 2024 settlement offer for $500,000, which expressly articulated the successful theory that certain trust distributions were unpaid, was a reasonable offer that should have been accepted; accordingly the defendant Lyle must pay the plaintiff's costs from October 17, 2024, assessed as party-and-party costs at Scale B. The earlier February 2, 2024 offer was not sanctionable because it lacked substantive rationale and was not unreasonably rejected.
The settlement provision allowing immediate entry of judgment on default is an acceleration clause, not a forfeiture, and s.25 of the Law and Equity Act applies only to covenants in a mortgage of land or agreements for sale of land; because the settlement agreement did not create a legal or equitable mortgage or an agreement for sale and the CPL was not a pledge created by the agreement, relief from forfeiture under s.24/25 was unavailable; alternatively, even if available, the appellants failed to satisfy the discretionary criteria for relief.
Court found defendants liable for negligence and breach of fiduciary duty: the Amended SOC contained a factual error (B Claims misdescribed as held in trust for Boss) caused by defendant counsel's failure to verify and to account for prior file materials; that error foreseeably gave the beneficial owner leverage, caused settlement complications and payments; causation established; but plaintiffs bore 50% contributory negligence for failures to detect and mitigate; court applied a $2,000,000 'but for' deduction (likely value that would have been paid for B Claims absent the error), reduced rec…
The stay application was dismissed because the appellant failed to meet the low merits threshold and the balance of convenience favoured the respondents; however, a limited temporary stay of the vacant possession order until March 31, 2026 was granted to mitigate relocation hardship.
Ontario Court of Appeal held the trial judge erred in dismissing a resulting trust claim over a family home and declared the appellants entitled to a 50% beneficial interest.
The court held that the termination notice was a prohibited act in violation of the stay under the ARRO and thus of no force; the Digital Accounts are assets of Hotel Versante included within the Purchased Assets under the approved sale and must be delivered to the Receiver to preserve operations and effect the sale; solicitor-and-client costs were awarded against 1036524 B.C. Ltd. for deliberate interference with the sale.
Allowing an evicted former tenant and an associate with an uncontrolled aggressive dog to occupy a tenant's unit constituted breaches of Statutory Conditions 3 and 4 of s.9(1) of the Residential Tenancies Act and justified termination of the lease, but mitigating factors (long tenancy, some remedial steps) justified replacing immediate termination with a conditional order requiring lock replacement, prohibition of key sharing and exclusion of named persons, with liberty for landlord to seek immediate termination upon breach.