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The Court of Appeal set aside a term making a constructive trust subject to an accounting and awarded $100,000 in punitive damages for fiduciary misconduct.
On a summary trial, the court found the attorney breached fiduciary duties, misappropriated estate funds, and was unjustly enriched, awarding repayment and return of cryptocurrency.
The court granted a production application in a fraud and tracing dispute, ordering financial and tax records in the defendant’s power, possession or control.
The General Division erred by failing to address the Employer's allegations and evidence regarding misappropriation of funds, but the Appeal Division would not admit new evidence, and on the existing record the evidence does not establish that the Claimant misappropriated funds or that any such misappropriation caused the dismissal; therefore there is no basis to overturn the General Division's outcome and the appeal is dismissed.
Source excerpt
A British Columbia trial judgment over a failed real estate development found secret profits, misappropriated project funds, and partial liability among multiple defendants.
Oral reasons on liability in a fraud-driven invoice dispute. The court found the defendants bore the loss after acting on fake email wire instructions and gave judgment for Apex.
In a discovery application, the court ordered narrowed production of documents, including the Napkin, bank statements, tax returns and certain communications, while denying one request and dismissing another with liberty to re-apply.
Family property and spousal support dispute: the court excluded most liquid assets, rejected Kennedy Town as family property, reapportioned property 65/35 in the respondent's favour, and denied support.
The appeal is dismissed because the motion judge properly determined that partial summary judgment was appropriate given prior case management triage, relied on a voluminous record to make permissible credibility and liability findings that Zhou committed fraud and misappropriated funds, and correctly awarded remedies (monetary judgment, punitive damages, and full indemnity costs) while dismissing the counterclaim; no palpable or overriding error was shown.
Source excerpt
The court dismissed a summary judgment application in an unjust enrichment claim, finding triable issues about use of alleged misappropriated funds and discovery compliance.
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