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The court dismissed a Rule 9-5/9-6 application to strike or summarily dismiss remaining trust and oppression claims, and ordered a clarified fifth amended notice of civil claim.
The inherent jurisdiction to supervise trusts does not obviate standing requirements; private interest standing is required in private trust disputes, and the appellant lacked a personal legal interest or pleaded facts (including any basis for constructive trustee liability) to establish standing, so dismissal under Rule 21.01 was correct.
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The Court concluded there was ample evidence of a trust arrangement and that the appellant, as directing mind, transferred trust monies into the general account while contemplating bankruptcy, obtaining a substantial personal benefit and thereby knowingly exposing the respondent to risk; consequently the appellant is personally liable as a constructive trustee (citing Re Air Canada).
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