Month: January 2020

“In Kerr, the court dealt at length with unjust enrichment. At para. 33, Cromwell J. held that there is no separate line of authority for family cases developed within the law of unjust enrichment and reaffirmed the statement in Peter v. Beblow, 1993 CanLII 126 (SCC), [1993] 1 S.C.R. 980, at p. 997, that “the basic principles governing the rights and remedies for unjust enrichment remain the same for all cases.” I refer to this point because, although this is a family law case, the determination of the limitation period issue will have ramifications beyond family law. The resolution of the limitation period issue cannot turn on the fact that this is a family law case. Thus, in my view, the fact that the Family Law Act prescribes a limitation period for claims under that Act cannot be determinative of the limitation period issue.

I recognize that Cromwell J. went on to hold at para. 34, again referring to Peter, at p.997, that the courts must “exercise flexibility and common sense applying equitable principles to family law issues with due sensitivity to the special circumstances that can arise in such cases”.  Indeed, the family law context was front and centre when considering the remedy for unjust enrichment in such cases. But, in my view, the resolution of the strictly legal question as to the application of the Limitations Act, 2002 and the Real Property Limitations Act turns on the interpretation of the relevant provisions of those Acts. The issue of whether the Real Property Limitations Act applies to a claim for a constructive trust will be the same whether the equitable claim for an interest in land arises out of a domestic relationship or a purely business transaction.

In Kerr, at para. 32, the court reiterated the by now well-known elements of a claim for unjust enrichment as developed in Canadian law: an enrichment of or benefit to the defendant, a corresponding deprivation of the plaintiff and the absence of a juristic reason for the enrichment. At this stage of the proceeding, those elements are not in issue. The motion judge was asked to deal with the legal issue on the assumption that the respondent could make out those elements: see para. 13 of the motion judge’s reasons. This case turns rather on the remedy for the unjust enrichment and how the remedies should be characterized.

Remedies for unjust enrichment are restitutionary and the court in Kerr affirmed that proprietary and monetary remedies are available for unjust enrichment. At para. 46, Cromwell J. described the two available remedies in these terms:

A successful claim for unjust enrichment may attract either a “personal restitutionary award” or a “restitutionary proprietary award”. In other words, the plaintiff may be entitled to a monetary or a proprietary remedy (Lac Minerals Ltd. v. International Corona Resources Ltd., 1989 CanLII 34 (SCC), [1989] 2 S.C.R. 574, at p. 669, per La Forest J.).

Further, Cromwell J. also noted that the court should first consider whether a monetary award is sufficient; in most cases it is: para. 47. Most of Kerr is concerned with calculating the monetary award. The case does, however, refer to the proprietary award in several contexts. The first context is where the plaintiff, like this respondent, seeks a constructive trust. Justice Cromwell explains as follows at para. 50:

The Court has recognized that, in some cases, when a monetary award is inappropriate or insufficient, a proprietary remedy may be required. Pettkus is responsible for an important remedial feature of the Canadian law of unjust enrichment: the development of the remedial constructive trust. Imposed without reference to intention to create a trust, the constructive trust is a broad and flexible equitable tool used to determine beneficial entitlement to property (Pettkus, at pp. 843-44 and 847-48). Where the plaintiff can demonstrate a link or causal connection between his or her contributions and the acquisition, preservation, maintenance or improvement of the disputed property, a share of the property proportionate to the unjust enrichment can be impressed with a constructive trust in his or her favour (Pettkus, at pp. 852-53; Sorochan, at p. 50). Pettkus made clear that these principles apply equally to unmarried cohabitants, since “[t]he equitable principle on which the remedy of constructive trusts rests is broad and general; its purpose is to prevent unjust enrichment in whatever circumstances it occurs” (pp. 850-51). [Emphasis added.]

Kerr also makes the point that there must be a significant link between the plaintiff’s contribution and the property that she seeks to have impressed with the trust. As Cromwell J. said at para. 51:

As to the nature of the link required between the contribution and the property, the Court has consistently held that the plaintiff must demonstrate a “sufficiently substantial and direct” link, a “causal connection” or a “nexus” between the plaintiff’s contributions and the property which is the subject matter of the trust (Peter, at pp. 988, 997 and 999; Pettkus at p. 852; Sorochan, at pp. 47-50; Rathwell, at p. 454). A minor or indirect contribution will not suffice (Peter, at p. 997). As Dickson C.J. put it in Sorochan, the primary focus is on whether the contributions have a “clear proprietary relationship” (p. 50, citing Professor McLeod’s annotation of Herman v. Smith (1984), 1984 CanLII 1238 (AB QB), 42 R.F.L. (2d) 154, at p. 156). Indirect contributions of money and direct contributions of labour may suffice, provided that a connection is established between the plaintiff’s deprivation and the acquisition, preservation, maintenance, or improvement of the property (Sorochan, at p. 50; Pettkus, at p. 852).

With that background I return to the interpretive issue and specifically to the question of whether an application for the equitable remedy of a constructive trust in real property is an application for recovery of any land. In my view, the respondent is making a claim for recovery of land in the sense that she seeks to obtain land by judgment of the Court. That the court might provide her with the alternative remedy of a monetary award does not take away from the fact that her claim is for a share of the property. The repeated references to constructive trust as a remedy for unjust enrichment in Kerr demonstrate that a proprietary remedy is a viable remedy for unjust enrichment where there is a link or causal connection between her contributions and the acquisition, preservation, maintenance or improvement of the property.

In sum, I agree with the motion judge’s conclusion at para. 80 of his reasons:

From the plain meaning of the words “action to recover any land” in section 4 of the Real Property Limitations Act, in their “entire context” as described above, I find that the applicant’s claim in this case for an ownership interest in the house in question is an “action to recover any land” within the meaning of section 4 of the Real Property Limitations Act. It is subject to a ten year limitation period. Based on the record before me, it is not possible for me to conclude that the applicant’s claim in this case is barred by the ten year limitation. Accordingly, this part of her claim is entitled to proceed.”

McConnell v. Huxtable, 2014 ONCA 86 (CanLII) at 33-39

“Under s. 18 [of the Child Support Guidelines], the court has a discretionary power to include all or part of the pre-tax income of a corporation where it has determined that the amount of the payor’s annual income, as determined under s. 16, does not fairly reflect all the money available to the spouse for the payment of child support.  The factors a court ought to consider were set out in Koester v. Koester, 2003 CanLII 2150 (ON SC), [2003] CarswellOnt 5372 (S.C.J) at para. 34:

(a)    To what extent is the availability of access to pre-tax corporate income restricted by the ownership structure?

(b)    What restrictions on availability are imposed by nature of the corporation’s business including the amount of capital equipment required, the nature of the industry in which the company operates, the outlook in terms of expansion or contraction, the level of debt as well as any banking or financing restrictions?

(c)     Historical trends and practices of the corporation.”

Turk v. Turk, 2008 CanLII 3420 (ON SC) at 35

“I agree with the submissions of the appellant and the interveners that it would be bad policy to disturb the well-established practice of counsel meeting with expert witnesses to review draft reports. Just as lawyers and judges need the input of experts, so too do expert witnesses need the assistance of lawyers in framing their reports in a way that is comprehensible and responsive to the pertinent legal issues in a case.

Consultation and collaboration between counsel and expert witnesses is essential to ensure that the expert witness understands the duties reflected by rule 4.1.01 and contained in the Form 53 acknowledgment of expert’s duty. Reviewing a draft report enables counsel to ensure that the report (i) complies with the Rules of Civil Procedure and the rules of evidence, (ii) addresses and is restricted to the relevant issues and (iii) is written in a manner and style that is accessible and comprehensible. Counsel need to ensure that the expert witness understands matters such as the difference between the legal burden of proof and scientific certainty, the need to clarify the facts and assumptions underlying the expert’s opinion, the need to confine the report to matters within the expert witness’s area of expertise and the need to avoid usurping the court’s function as the ultimate arbiter of the issues.

Counsel play a crucial mediating role by explaining the legal issues to the expert witness and then by presenting complex expert evidence to the court. It is difficult to see how counsel could perform this role without engaging in communication with the expert as the report is being prepared.

Leaving the expert witness entirely to his or her own devices, or requiring all changes to be documented in a formalized written exchange, would result in increased delay and cost in a regime already struggling to deliver justice in a timely and efficient manner. Such a rule would encourage the hiring of “shadow experts” to advise counsel. There would be an incentive to jettison rather than edit and improve badly drafted reports, causing added cost and delay. Precluding consultation would also encourage the use of those expert witnesses who make a career of testifying in court and who are often perceived to be hired guns likely to offer partisan opinions, as these expert witnesses may require less guidance and preparation. In my respectful view, the changes suggested by the trial judge would not be in the interests of justice and would frustrate the timely and cost-effective adjudication of civil disputes.”

         Moore v. Getahun, 2015 ONCA 55 (CanLII) at 62-65

“On the question of joint family venture, the trial judge considered how the parties had conducted themselves during their cohabitation. She considered, among other things, the improvements to the property without expectation of compensation, the granting of minority interests in the respondent’s company to the appellant and their son when it was incorporated in 2004, the fact that the appellant wrote cheques on the respondent’s bank account for his share of household expenses, and the fact that both parties worked full-time and contributed their earnings to the joint expenses of the household, including the cost of childcare. While the trial judge did not expressly consider the evidence under the various headings in Kerr v. Baranow, 2011 SCC 10 (CanLII), [2011] 1 S.C.R. 269, at para. 100 (mutual effort, economic integration, actual intent and priority of the family), she clearly considered all of these factors. The finding that there was a joint family venture in this case was open to the trial judge on the evidence.

Further, we do not accept the appellant’s submission that the evidence was that the only payments the respondent made, other than loan repayments, were in the final two years of the relationship. Bank statements were only available for that period, and the trial judge accepted the respondent’s testimony that he had contributed to household expenses throughout the relationship, including some payments in cash. Further, having regard to the parties’ incomes, the only way the mortgage could have been paid down early was if both had contributed.

Finally, the appellant contends that the finding of joint family venture did not remove or lessen the burden on the respondent to quantify and prove his contributions. She says that there was no evidence to support the award of damages by the trial judge, and that after finding that there was a joint family enterprise, she simply awarded the respondent the lesser of one half of the net proceeds from the sale of the property after repayment to the appellant of $147,000, and $86,500 (the amount of his claim). She ought to have determined the respondent’s proportionate contribution before making the order she did.

We do not find reversible error here. The appropriate remedy in a joint family venture case is “a share of the wealth accumulated through the parties’ joint efforts proportionate to the claimant’s contributions”: Kerr, at para. 102. Contrary to the appellant’s submissions, that would not entail a detailed review of the respondent’s contributions (akin to a quantum meruit approach); indeed, as the court stated in Kerr, also at para. 102, “[w]hile determining the proportionate contributions of the parties is not an exact science, it generally does not call for a minute examination of the give and take of daily life. It calls, rather, for the reasoned exercise of judgment in light of all of the evidence.”

         Junker v. Hughes, 2016 ONCA 81 (CanLII) at 19-22

“In J.B. v. D.M., 2014 ONSC 7410 (CanLII), 2014 ONSC 7410 (Can LII), Horkins J. accepted that a Home Buyers Plan debt corresponded to a party’s RRSP asset which reflected that debt as a receivable.  In this, she noted that her treatment was consistent with Antemia v. Divito, 2010 ONSC 578 (CanLII), 2010 ONSC 578 (Can LII) and Grassie v. Grassie, 2013 ONSC 1198 (CanLII).  A more nuanced analysis would value the RRSP inclusive of the remaining payment obligation less that remaining payment obligation as a deduction and less a notional tax deduction for the gross value of the RRSP.  That analysis was not done in this case and there was no evidence as to the appropriate notional tax rate to be applied.”

Lawrence v. Lawrence, 2017 ONSC 431 (CanLII) at 38

“To the extent that Susan is seeking to vary paragraph (h) of the Gilmore Order, there are no grounds to support such a request.  As stated, the Gilmore Order is a consent order.  The jurisprudence is clear that a consent order may only be set aside or varied on the grounds of common mistake, misrepresentation, fraud or any other ground which would invalidate a contract.

As held by the Court of Appeal for Ontario in Miller Paving Ltd. v. B. Gottardo Construction Ltd. 2007 ONCA 422 (CanLII), in order to find the presence of common mistake, the following elements must be proven:

(a)    a common assumption as to the existence as to the state of affairs;

(b)    no warranty by either party that the state of affairs exists;

(c)    the non-existence of the state of affairs must not be attributable to the fault of either party;

(d)    the non-existence of the state of affairs must render performance of the contract impossible: and

(e)    the state of affairs may be the existence, or a vital attribute, of the consideration to be provided or circumstances which must subsist if performance of the contractual adventure is to be possible.”

Vasarhelyiv v. Borges, 2019 ONSC 590 (CanLII) at 18-19 

“The leading case under s. 9 [of the Child Support Guidelines] is the seminal decision of the Supreme Court of Canada in Contino v. Leonelli-Contino, 2005 SCC 63 (CanLII). The following principles emerge from that decision:

1. 1. 1. The first step is to determine whether the evidence establishes that the 40% threshold has been met;
      2. If it has, then the court must determine the appropriate amount of support based on a budget;
      3. The discretion to be exercised by the court requires consideration of the conditions and means of the parents and the needs of the children;
      4. The weight to be accorded each factor will vary according to the facts of each case;
      5. A pro-rated set-off of the amount each parent is required to pay according to the applicable Table is a starting point for analysis of the means and conditions of the parents;
      6. Further adjustments may be warranted to account for fixed and variable costs that each parent bears as part of his or her spending patterns;
      7. The court should consider the budgets and actual child care expenses of each parent as they relate to increased costs, if any, that arise under the shared care arrangements; and
      8. There is a broad discretion under s. 9(c) to conduct an analysis of the resources and needs of both parents and children. That analysis is necessarily contextualized to the particular facts of the case. Helpful factors include the actual spending patterns of the parents, the ability of each parent to bear the increased costs of shared care, and the standard of living of the children in each household.”

  Willert v. Willert, 2019 ONSC 614 (CanLII) at 108

“Financial disclosure is important in marriage contracts. Prior to entering into a contract, the parties need to fully understand their rights and obligations as if no contract existed (LeVan, para. 52). In addition to understanding their rights and what they are being asked to give up, the parties also need to understand each spouse’s asset base (ibid, para. 53).

If a party enters into a marriage contract aware of any disclosure shortcomings, the party cannot then rely on those shortcomings as a basis for setting aside the contract. See Butty v. Butty, 2009 ONCA 852 (CanLII), 99 O.R. (3d) 228, at para. 54. Similarly, a party cannot resile from the consequences of failing to compel further disclosure unless that party can demonstrate that the financial disclosure provided was inaccurate, misleading or false (see Quinn v. Keiper (2007), 2007 CanLII 45714 (ON SC), 87 O.R. (3d) 184 (Ont. S.C.) [Quinn]).

In Quinn, the trial judge sets out at, para. 47, a two-stage analysis for considering whether a domestic contract should be set aside for non-disclosure:

(i)    First, the party seeking to set aside the agreement must demonstrate that the other party failed to discharge its duty to disclose significant assets. The failure to disclose significant assets includes the making of a material misrepresentation about the true value of assets, and the failure to disclose changes in income. The significance of an asset is assessed by measuring the value of the asset against a party’s disclosed net assets. To conclude that a party has failed to disclose a significant asset, there must be some evidence to verify the value or extent of the party’s assets either at the date of marriage or the date of the agreement;

(ii)   If a court finds that a party has failed to disclose a significant asset, the court must determine, in light of the facts of each case, whether it should exercise its discretion to rescind the domestic contract. The burden of proof lies on the party seeking to set aside the contract to persuade the court to exercise its discretion in its favour. The court will take into account a variety of factors in exercising its discretion:

i.     whether the party who did not make full disclosure was asked or refused to do so; whether that party misrepresented or concealed financial facts; whether the other party had full financial information in any event; and, whether the other party would have signed the contract even if the disclosure had occurred;

ii.   whether the party relied on the non-disclosure or misrepresentations in entering into the separation agreement in the sense that the party would not have entered the agreement had she known the true value of the assets;

iii.    whether a party consented to incomplete disclosure, or was otherwise aware of the asset and had the means to ascertain its value;

iv.    whether one party took benefits under the contract and then moved to set it aside; and,

v.   whether there had been duress, or unconscionable circumstances; whether the petitioning party neglected to pursue full legal disclosure; whether she moved expeditiously to have the agreement set aside; and whether the other party had fulfilled his obligations under the agreement.”

         Toscano v. Toscano, 2015 ONSC 487 (CanLII) at 46-48

“Disclosure is not a fishing expedition. Disclosure cannot be used to cause delay, deliberately burden an opponent with unnecessary costs or to reap tactical advantage: Chernyakhovsky v. Chernyakhovsky  2005 CarswellOnt 942.  It cannot be used to confuse, mislead or distract the trier of fact’s attention from the main issues – even if done inadvertently”: Boyd v. Fields  2006 CarswellOnt 8675.”

Milgrom v. Levy, 2019 ONSC 564 (CanLII) at 28

“When the parties argued the summary judgment motion in February, 2016, the Limitations Act, 2002 contained two limitation period regimes for sexual assault claims, the application of which turned upon the nature of the relationship between the plaintiff and the defendant. First, under s. 16(1)(h), no limitation period applied to a sexual assault claim against a person in a position of trust or authority over the complainant or on whom the complainant was dependent. Second, for all other sexual assault claims, the ordinary two-year limitation period applied. However, pursuant to s. 10(1), time did not run while the complainant was incapable of commencing a proceeding because of her physical, psychological or mental condition; s. 10(3) presumed the person was incapable of commencing the proceeding earlier than the date it was commenced, unless the contrary was proved.

Upon coming into force on March 8, 2016, Schedule 2 to the Amending Act significantly changed the provisions of the Limitations Act, 2002 concerning sexual assault claims. Section 16(1)(h) of the Act was amended to provide there is no limitation period in respect of “a proceeding arising from a sexual assault.” Section 10 of the Act dealing with a plaintiff’s capacity was repealed.

The new ss. 16(1.1) and (1.2) gave retroactive effect to the removal of any limitation period for “a proceeding arising from a sexual assault”:

16. (1.1) Clauses (1) (h), (h.1) and (h.2) apply to a proceeding whenever the act on which the claim is based occurred and regardless of the expiry of any previously applicable limitation period, subject to subsection (1.2).

(1.2) Subsection (1.1) applies to a proceeding that was commenced before the day subsection 4 (2) of Schedule 2 to the Sexual Violence and Harassment Action Plan Act (Supporting Survivors and Challenging Sexual Violence and Harassment), 2016 came into force, unless the proceeding,

(a) was dismissed by a court and no further appeal is available; or

(b) was settled by the parties and the settlement is legally binding.”

Cook v. Joyce, 2017 ONCA 49 (CanLII) at 18-20