January 20, 2021 – Oral Contracts

“A settlement agreement is subject to the general law of contract. For a settlement agreement to exist, the court must find the parties (i) had a mutual intention to create a legally binding contract and (ii) reached agreement on all of the essential terms of the settlement: Olivieri v. Sherman (2007), 2007 ONCA 491 (CanLII), 86 O.R. (3d) 778 (C.A.), at para. 41. Whether the parties have manifested mutual assent to specific terms usually is determined from their overt acts: Bogue v. Bogue (1999), 1999 CanLII 3284 (ON CA), 46 O.R. (3d) 1 (C.A.), at para. 17. Or, as described by this court in McLean v. McLean, 2013 ONCA 788, 118 O.R. (3d) 216, at para. 10, a court must employ an objective approach to the evidence, determining “what a reasonable observer would have believed the parties intended, taking into consideration the evidence of all the parties as well as the surrounding documentary evidence.”

Where the parties reduce their bargain to writing, a court determines the parties’ intentions in accordance with the language used in the written document, having regard to the objective evidence of the factual matrix: Salah v. Timothy’s Coffees of the World Inc., 2010 ONCA 673, 268 O.A.C. 276, at para. 16.

Oral contracts, such as the one at issue in the present case, present different challenges regarding the issues of formation and interpretation. As put by Angela Swan and Jakub Adamski in Canadian Contract Law, 3rd ed. (Markham, ON: LexisNexis, 2012), at §2.27:

There is no general rule against the enforcement of oral promises, but the fact that a promise is oral suggests that its making may not have been accompanied by anything that sufficiently brought home to the parties the significance of what they were doing and, of course, the terms of an oral promise are no more certain than the parties’ recollections of them.”

Cook v. Joyce, 2017 ONCA 49 (CanLII) at 65-67

January 19, 2021 – Litigation Privilege: A Primer

“Communications made in an attempt to effect a compromise or resolve issues are subject to litigation privilege. This is a long-standing principle and is reflected in the words of Cameron C.J. of the Ontario Court of Appeal in Pirie v. Wyld (1886), 11 O.R. 422 (C.A.), at p. 427:

… letters written or communications made without prejudice, or offers made for the sake of buying peace, or to effect a compromise, are inadmissible in evidence. It seemingly being considered against public policy as having a tendency to promote litigation, and to prevent amicable settlements.

As the Divisional Court stated at para. 11 of Inter-Leasing, Inc. v. Ontario (Finance), 2009 CanLII 63595 (ON SCDC):

A party seeking to introduce in evidence material subject to settlement privilege must show that the communication is relevant and the disclosure is necessary, either to show the agreement of the parties or to address a compelling or overriding interest of justice. (Dos Santos (Committee of) v. Sun Life Assurance Co. of Canada, 2005 BCCA 4 (CanLII), [2005] B.C.J. No. 5 (B.C.C.A.) at para 20).

This statement was submitted to and accepted by Fragomeni J. at paras. 16 and 23 of Rodriguez v. Guignard 2012 ONSC 2444 (CanLII), 20 R.F.L. (7th) 146.

At para. 17, Fragomeni J. went on to quote Alan W. Bryant, Sidney N. Lederman, & Michelle K. Fuerst, The Law of Evidence in Canada, 3d ed. (Markham: LexisNexis Canada Inc., 2009), at p. 1030:

s. 14.313 It has long been recognized as a policy interest worth fostering that parties be encouraged to resolve their private disputes without recourse to litigation, or, if an action has been commenced, encouraged to effect a compromise without resort to trial.

s. 14.315 In furthering these objectives, the courts have protected from disclosure communications, whether written or oral, made with a view to reconciliation or settlement. In the absence of such protection, few parties would initiate settlement negotiations for fear that any concession they would be prepared to offer could be used to their detriment if no settlement agreement was forthcoming.

As the court said in William Allan Real Estate Co. v. Robichaud (1987), 17 C.P.C. (2d) 138 (Ont. H.C.), at p. 141, “What sensible man would attempt settlement if it could be used against him at trial?”

The conflict between the protection of settlement communications by litigation privilege and the production of all evidence relevant to the best interest of a child was discussed in Hutton v. Hutton, [1990] O.J. No. 1081 (Dist. Ct.), where Taliano D.C.J. stated:

I am not unmindful of the fact that the court should not lightly displace a privilege that has been entrenched in the law for so long, but in this case, it is necessary to give pre-eminence to a policy objective that is superior to it. Although both policy objectives are important and deserve to be fostered, the policy interest that promotes and protects the best interests of the child is paramount and the privilege attached to settlement discussions must therefore yield to it…

This can be considered alongside Georgareas v. Georgareas, 2006 CanLII 44274 (ON SC), where Herman J. made the following observation at para. 7:

However, while the substance of the proposals is privileged, evidence that attempts have been made to resolve access and those attempts have not been successful is, in my opinion, permitted evidence. The ability of the parents to come to agreements regarding their children, including agreements regarding access, is relevant to a determination of custody and access and what is in the children’s best interests.

The substance of the discussions should therefore be deleted from the affidavit and exhibits but evidence in support of the party’s allegation that there is a pattern of frustrating access I otherwise permitted.”

Lemieux v. Lemieux, 2017 ONSC 313 (CanLII) at 42-48

January 18, 2021 – Mediation-Arbitration

“We do not agree with the submission that there is any ambiguity in the words “mediation/arbitration” or that those words mean “mediation or arbitration.”  Mediation/ arbitration is a well recognized legal term of art referring to a hybrid dispute resolution process in which the named individual acts first as a mediator and, failing agreement, then proceeds to conduct an arbitration.”

Marchese v. Marchese, 2007 ONCA 34 (CanLII) at 4

January 15, 2021 – “Ordinarily Resident”

“Section 3 of the Divorce Act states: “A court in a province has jurisdiction to hear and determine a divorce proceeding if either spouse has been ordinarily resident in the province for at least one year immediately preceding the commencement of the proceeding.” (emphasis added)

At the time the applicant filed her application she had been living in Canada for 9 months.  The respondent has not lived in Canada.

In Haroon v. Haroon 2019 ONSC 77 the court found there was no jurisdiction to hear a divorce application under the Divorce Act as the applicant was not ordinarily resident in Ontario for one year prior to the application being commenced.

The court in Robar v Robar 2010 NBQB 8 declined jurisdiction under the Divorce Act where the wife had moved to NB eight (8) months before signing her petition for divorce. The court emphasized that section 3 of the Divorce Act was the “sole basis for jurisdiction for divorce.” (at para. 12).  Further, the court noted that “these statutory requirements are substantive, and failure to establish residency is fatal to the proceeding.” (at para. 14).  The court did, however, find that it had jurisdiction to grant the divorce under the Divorce Act by virtue of the counter-petition filed by the husband, who had been ordinarily resident in NB for over 12 months at the time he signed his counter-petition.

In Gazo v Gazo 2005 CarswellOnt 534 the court discussed the residency requirement under section 3 of the Divorce Act and stated: 

Sections 3 to 6 of the Divorce Act define the jurisdictional competence of a court to grant a divorce and any corollary relief by way of spousal or child support or custody of or access to the children. A divorce petition can be presented by either or both spouses to the court of the province wherein either spouse has been ordinarily resident for not less than one year immediately preceding the filing of the petition. The first issue then is whether Maria Gazo has been ordinarily resident in Ontario for not less than one year immediately preceding the filing of the divorce petition. In this case, there is no doubt that she has not been resident in Ontario for the requisite time period. …. she may have intended to maintain her residency here. However, she did not do so. As was held in MacPherson v. MacPherson (1976), 1976 CanLII 854 (ON CA), 28 R.F.L. 106 (Ont. C.A.), intention alone cannot determine ordinary residence. Mr. and Mrs. Gazo left Ontario in 2001 and moved to the Slovak Republic. They made the Slovak Republic their home until Maria Gazo returned to Ontario in March 2003. When she commenced her divorce proceeding on December 4, 2003, she had been resident in Ontario since March 31, 2003. Maria Gazo was not ordinarily resident in Ontario for one year immediately preceding the filing of the petition. This Court had no jurisdiction to entertain the petition for divorce.

The court in Jung v Jung 2016 ONSC 3020 addressed the residency requirement of section 3 of the Divorce Act and stated: 

In general, courts have strictly interpreted s. 3(1). The prevailing view is that “there is no naturally existing right to a divorce, but rather a right, based in statute, to present a petition for a divorce”: Garchinski v. Garchinski, 2002 SKQB 323 (Sask. Q.B.), at para. 25. The leading case for this proposition is Winmill v. Winmill (1974), 1974 CanLII 1228 (FCA), 47 D.L.R. (3d) 597 (Fed. C.A.). In Winmill, the applicant argued that the Federal Court should exercise jurisdiction to hear her divorce under s. 25 of the Federal Court Act, which provision allows the Federal Court to hear claims for relief where no other courts in Canada have jurisdiction. The applicant did not meet the residency requirement in any individual Canadian province. The Federal Court of Appeal rejected her argument, holding that the Divorce Act does not grant a right to divorce, but a limited right to apply for divorce subject to the conditions of the Act.

As neither the applicant nor the respondent were ordinarily resident in Canada for one year prior immediately preceding the commencement of an application under the Divorce Act, the court has no jurisdiction to consider the request.”

Nawab v. Abid, 2019 ONSC 7590 (CanLII) at 23-29

January 14, 2021 – Occupation Rent

An excellent summary of the factors to consider in the context of claims for occupation rent can be found in Casey v. Casey, 2013 SKCA 58 (CanLII), [2013] S.J. No. 308 (CA) at para. 48:

48     From the jurisprudence the following principles may be drawn regarding the awarding of occupational rent on a matrimonial home:

 

1. Occupational rent is a remedy which may be utilized to obtain justice and equity in appropriate circumstances.

2. The remedy is exceptional and should be used cautiously.

3. The following factors, where relevant, are appropriately considered:

* The conduct of both spouses, including failure to pay support, the circumstances under which the non-occupying spouse left the home, and if and when the non-occupying spouse moved for a sale of the home (Peltier at paras. 16-17; Wilgosh at paras. 99 and 109; Good at para. 90).

* Where the children are residing and who is supporting them (Good at para. 90; Peltier at paras. 16-17; Wilgosh at para. 108).

*  If and when a demand for occupational rent was made (Wilgosh at paras. 100 and 106, Good at para. 90, and Peltier at para. 16).

* Financial difficulty experienced by the non-occupying spouse caused by being deprived of the equity in the home (Peltier at paras. 16-17; Wilgosh at para. 106). 

* Who is paying for the expenses associated with the home. This includes who is paying the mortgage and other upkeep expenses (maintenance, insurance, taxes, etc.). If there is no mortgage, occupational rent may be needed to equalize accommodation expenses (Good at para. 90; Peltier at paras. 16-17; Wilgosh at paras. 105-106 and 108).

* Whether the occupying spouse has increased or decreased the selling value of the property (Peltier at paras. 16-17).

* Any other competing claims in the litigation that may offset an award of occupational rent (Wilgosh at para. 108; Good at para. 92).

4.  The remedy is a discretionary one requiring the balancing of the relevant factors to determine whether occupational rent is reasonable in the totality of the circumstances of the case.

In Griffiths v. Zambosco, 2001 CanLII 24097 (ON CA), [2001] O.J. No. 2096 (CA), the Court noted at para. 49:

49     Since Griffiths and Sloan owned the matrimonial home jointly, and since Griffiths occupied it for over six years after he and Sloan separated, the trial judge clearly had jurisdiction to order Griffiths to pay occupation rent if it was reasonable and equitable to do so. See Irrsack v. Irrsack (1979), 1979 CanLII 1647 (ON CA), 27 O.R. (2d) 478 (C.A.). The relevant factors to be considered when occupation rent is in issue will vary from case to case. However, in a family law context some factors are consistently taken into account. They include:

* The timing of the claim for occupation rent;

* The duration of the occupancy;

* The inability of the non-resident spouse to realize on her equity in the property;

* Any reasonable credits to be set off against occupation rent;

* Any other competing claims in the litigation.”

Hubley v. Fitzpatrick, 2019 ONSC 305 (CanLII) at 93-94

January 13, 2021 – Frivolous and Vexatious Proceedings

“The concepts of frivolous and vexatious proceedings were described by the Court of Appeal in Currie v. Halton Regional Police Services Board, 2003 CanLII 7815 (ON CA):

[14]         Black’s Law Dictionary defines “frivolous” as: “Lacking a legal basis or legal merit; not serious; not reasonably purposeful”.

[15]      In Foy v. Foy (No. 2) (1979), 1979 CanLII 1631 (ON CA), 26 O.R. (2d) 220 at 226, Howland, C.J.O. considered the meaning of “vexatious” under the Vexatious Proceedings Act, R.S.O. 1970, c. 481:

The word “vexatious” has not been clearly defined.  Under the Act, the legal proceedings must be vexatious and must also have been instituted without reasonable ground.  In many of the reported decisions the legal proceedings have been held to be vexatious because they were instituted without any reasonable ground.  As a result the proceedings were found to constitute an abuse of the process of the Court.  An example of such proceedings is the bringing of one or more actions to determine an issue which has already been determined by a Court of competent jurisdiction: Stevenson v. Garnett, [1898] 1 Q.B. 677 at pp. 680-1; Re Langton, [1966] 3 All. E.R.

At para. 17, the court concluded, “What I take from the authorities is that any action for which there is clearly no merit may qualify for classification as frivolous, vexatious or an abuse of process”.”

Bernard v. Fuhgeh, 2020 ONSC 235 (CanLII) at 15-16

January 12, 2021 – Cruelty

“Over the years the Courts have steadfastly refrained from attempting to formulate a general definition of cruelty. As used in ordinary parlance “cruelty” signifies a disposition to inflict suffering; to delight in or exhibit indifference to the pain or misery of others; mercilessness or hard-heartedness as exhibited in action. If in the marriage relationship one spouse by his conduct causes wanton, malicious or unnecessary infliction of pain or suffering upon the body, the feelings or emotions of the other, his conduct may well constitute cruelty which will entitle a petitioner to dissolution of the marriage if in the Court’s opinion, it amounts to physical or mental cruelty “of such a kind as to render intolerable the continued cohabitation of the spouses”. That is the standard which the Courts are to apply, and in the context of s. 3(d) of the Act that standard is expressed in language which must be taken to exclude the qualifications laid down in Russell v. Russell, supra, and in the numerous other cases which have followed and applied the ancient ecclesiastical rule in matrimonial disputes. This is in accordance with the view taken in Zalesky v. Zalesky (1968), 1968 CanLII 612 (MB QB), 1 D.L.R. (3d) 471, 67 W.W.R. 104; Paskiewich v. Paskiewich (1968), 1968 CanLII 678 (BC SC), 2 D.L.R. (3d) 622, and Bonin v. Bonin (1969], 1969 CanLII 851 (NS SC), 5 D.L.R. (3d) 533. The only decision contra is that of Tyrwhitt-Drake, Co. Ct. J., sitting as Local Judge in Delaney v. Delaney (1968), 1968 CanLII 585 (BC SC), 1 D.L.R. (3d) 303, 66 W.W.R. 275. Reference may also be made upon this point to four recent decisions in the New Brunswick Courts: Hawthorne v. Hawthorne (1969), 1 N.B.R. (2d) 803; Maund v. Maund (1969), 1 N.B.R. (2d) 547; Chouinard v. Chouinard (1969), 1 N.B.R. (2d) 582, and Bustin v. Bustin (1969), 1 N.B.R. (2d) 496.

Care must be exercised in applying the standard set forth in s. 3(d) that conduct relied upon to establish cruelty is not a trivial act, but one of a “grave and weighty” nature, and not merely conduct which can be characterized as little more than a manifestation of incompatibility of temperament between the spouses. The whole matrimonial relations must be considered, especially if the cruelty consists of reproaches, complaints, accusations, or constant carping criticism. A question most relevant for consideration is the effect of the conduct complained of upon the mind of the affected spouse. The determination of what constitutes cruelty in a given case must, in the final analysis, depend upon the circumstances of the particular case having due regard to the physical and mental condition of the parties, their character and their attitude towards the marriage relationship.”

Knoll v. Knoll, 1970 CanLII 469 (ON CA)

January 11, 2021 – Extending Time to Appeal

The test for on a motion for an extension of time to appeal under r. 3.02(1) of the Rules of Civil Procedure is well-settled. The overriding principle is whether the “justice of the case” requires that an extension be given. The court must take into account all relevant considerations, including (a) whether the moving party formed a bona fide intention to appeal within the relevant time period; (b) the length of, and explanation for, the delay in filing; (c) any prejudice to the responding parties, caused, perpetuated or exacerbated by the delay; and (d) the merits of the proposed appeal: Enbridge Gas Distribution Inc. v. Froese, 2013 ONCA 131 (CanLII), 114 O.R. (3d) 636 (in Chambers), at para. 15. This court has the inherent jurisdiction to control its own processes and has the express power under s. 140(5) of the Courts of Justice Act, R.S.O. 1990, c. C. 43, to stay or dismiss a proceeding as an abuse of process: Oelbaum v. Oelbaum, 2011 ONCA 300 (CanLII), 94 R.F.L. (6th) 251, at para. 9.” 

Wilson v. Fatahi-Ghandehari, 2019 CanLII 1036 (ON CA) at 9

January 8, 2021 – Hearing An Appeal When In Default

“Faced with an appellant’s wilful refusal to honour a spousal support obligation, the court has several options.  One option is to dismiss the appeal for noncompliance with the trial court’s order.  That is the practice of the British Columbia Court of Appeal.  The following passage from the reasons of Lambert J.A. in Elensky v. Elenskaya (1993), 1993 CanLII 1937 (BC CA), 50 R.F.L. (3d) 231 makes good sense: 

In effect, Mr. Elensky is in breach of the order of Madam Justice Gill.  He is in breach because of his own determination of what he is going to pay based on his own assessment of his needs.

In those circumstances, it has been the practice of this Court not to hear appeals unless a convincing explanation is given of the impossibility of compliance with the court order.  No such convincing explanation has been given in this case.  If Mr. Elensky is going to make his own decisions about what to pay without regard to the court order then there is no purpose in this Court striving to achieve the best balancing of the interests of justice for the parties only to find that Mr. Elensky substitutes his views of that balancing for any view we may reach. 

In those circumstances, I would dismiss this appeal.

In Young v. Young (1976), 17 N.S.R. (2d) 375 the Nova Scotia Supreme Court  Appeal Division adopted the same practice.

Another option for the court is to adjourn the appeal until the appellant either pays the arrears or demonstrates that he cannot pay them.  Our court resorted to this option in Parkinson v. Parkinson (1973), 3 O.R. 293, where Gale C.J.O. said:

The Court has come to the conclusion that it ought not to entertain the appellant’s appeal until either the arrears owing by him are paid or we are satisfied that he cannot pay them.  Accordingly, the appeal will be adjourned sine die to permit the appellant to fulfil one or the other of those conditions.

A third option for the court is to hear the appeal on its merits, despite the appellant’s wilful default.  The court will be more likely to do this where the amount of arrears is small.  See Ott v. Ott (1982), 1982 CanLII 1872 (ON CA), 39 O.R. (2d) 260 (C.A.).” 

Brophy v. Brophy, 2004 CanLII 25419 (ON CA) at 11-12, 14

January 7, 2021 – Who Can Practise Law?

“In Ontario, only licensees under the [Law SocietyAct are permitted to practice law or provide legal services in Ontario.

Historically, the Act only governed barristers and solicitors and only contained prohibitions against the unauthorized practice of law. In 2006, the Act was amended to enable the Society to regulate the profession of paralegals. These changes came into force in 2007. The Act now prohibits both the unlicensed ‘practice of law’ and the unlicensed ‘provision of legal services’.

Section 26.1 sets out the specific prohibitions:        

(1) Subject to subsection (5), no person, other than a licensee whose licence is not suspended, shall practise law in Ontario or provide legal services in Ontario.         

(2) Subject to subsections (6) and (7), no person, other than a licensee whose licence is not suspended, shall hold themself out as, or represent themself to be, a person who may practise law in Ontario or a person who may provide legal services in Ontario.         

(3) No licensee shall practise law in Ontario or provide legal services in Ontario except to the extent permitted by the licensee’s licence.

(5) A person who is not a licensee may practise law or provide legal services in Ontario if and to the extent permitted by the by-laws.

Only lawyers may “practice law in Ontario”. According to s. 1(1) of the Act, “a person who is authorized to practise law in Ontario” is “a person who is licensed to practice law in Ontario as a barrister and solicitor and whose license is not suspended” or a person who is not licensed but “is permitted by the by-laws to practise law as a barrister and solicitor in Ontario”. Pursuant to s. 2 of “By-Law 4 – Licensing” made under s. 62 of the Act (“the By-Law”), only those who hold a class “L” licence are entitled to practice law in Ontario as a barrister and solicitor.

‘Providing legal services’ is broader. The Act provides guidance on what constitutes the provision of legal services. In s. 1(5), the Act explains that a person provides legal services “if the person engages in conduct that involves the application of legal principles and legal judgment with regard to the circumstances or objectives of a person”. The Act then expands on this definition:

(6) Without limiting the generality of subsection (5), a person provides legal services if the person does any of the following:

1. Gives a person advice with respect to the legal interests, rights or responsibilities of the person or of another person.

2. Selects, drafts, completes or revises, on behalf of a person,

vii. a document for use in a proceeding before an adjudicative body.

3. Represents a person in a proceeding before an adjudicative body.

4. Negotiates the legal interests, rights or responsibilities of a person.

(7) Without limiting the generality of paragraph 3 of subsection (6), doing any of the following shall be considered to be representing a person in a proceeding:

1. Determining what documents to serve or file in relation to the proceeding, determining on or with whom to serve or file a document, or determining when, where or how to serve or file a document.

2. Conducting an examination for discovery.

3. Engaging in any other conduct necessary to the conduct of the proceeding.

According to s. 6 of the By-Law, paralegals who hold a valid “P1” licence are entitled to provide various legal services. These include representing parties in proceedings in particular forums, such as Small Claims Court, the Ontario Court of Justice for provincial offences matters, or administrative tribunals. A licensed paralegal may also give a party advice regarding “his, her or its legal interests, rights or responsibilities” with respect to those proceedings.”

Law Society of Ontario v. Harry Kopyto, 2020 ONSC 35 (CanLII) at 9-14