In this blog we discuss a number of internet-based “dirty tricks” that competitors or others may deploy and which may have serious adverse consequences for you or your business. I also briefly mention the types of remedies which may be available to those victimized in this way. Confusingly Similar Domain Names In today’s modern web-based commercial world, it is more important than ever to ensure that potential customers and returning customers are properly connected with your website domain name, and to use domain names that are well-branded and associated with your business. It is not uncommon for competitors, cyber-squatters, or other persons to obtain control of domain names that are confusingly similar to your trademarks, business names, or your domain name. Then there is a real risk that users seeking your website are instead directed elsewhere by that confusingly similar domain name. Recovering a Domain Name In order to recover … Read More
Family Business Litigation | Start Up Company Litigation
We have experience acting for, advising and representing those in closely-held company litigation, both arising from family business disputes and start-up company disputes. Family Business Disputes Many businesses in Canada are family businesses or have evolved from family businesses. Family businesses present many unique challenges as they grow, as key members of the company or partnership leave the family business, or when personal relationships of the key members of the family business thereby change or deteriorate. One of the most common differences between a family business and other established businesses, whether or not a shareholders’ agreement, partnership agreement and other legal documentation was used in the formation of the family business, is the informality in operation of the family business, including the often ignored distinction in fact between employees, shareholders, or partners – since family members often take on multiple roles. Please see our webpage on Family and Closely Held … Read More
Divorce and the Family Business
Family Business Challenges from Divorce or Separation Many businesses in Canada are family businesses or have evolved from family businesses. Family businesses present unique challenges as they grow should the personal relationships of the key members of the family business change or deteriorate. Divorce and separation can have serious impact upon family-owned and family-run businesses, whether incorporated companies or partnerships. Changes in a family business and the challenges presented by change can often result in legal disputes between interested parties. Family business disputes are often be protracted, expensive, and disruptive, and may even result in the sale, division or winding up of the family business. Impact of Separation and Divorce on Family Businesses Complex questions arise in the division of property and assets when dealing with a family business during a separation or divorce. The value of the family business may be included in the equalization of net family property … Read More
Service Abroad in Civil and Commercial Litigation
The Hague Service Convention Since 1989 Canada has been a member of Hague Convention of 15 November 1965 on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters, (the Hague Service Convention). Incoming Service of Foreign Process We have blogged before about the requirement of the Hague Service Convention that its member States designate a “Central Authority” to accept incoming requests for service. There are alternatives to the Hague Service Convention service of foreign process in Ontario. Service of Ontario Process Abroad As other jurisdictions become, or will become, members of the Hague Service Convention, the Status Table is updated. For instance, see the status of Azerbaijan (November 1, 2023), Singapore (December 1, 2023) and Paraguay (January 1, 2024) on the Status Table. Why Chose Gilbertson Davis LLP? One of the senior commercial litigation lawyers at Gilbertson Davis LLP, though now only practicing in Ontario, has also practiced … Read More
Failure to Comply with Court Order can Result in Dismissal of Case
In the recent decision of the Ontario Court of Appeal (“ONCA”), Steinberg v. Adderley, 2023 ONCA 725, the ONCA dismissed the appellant’s appeal of an order finding him in contempt of a court order and dismissing his action. In this case, the appellant was ordered by two different judges to attend at a medical examination, but failed to do so. As a result, the respondent brought a motion to find the appellant in contempt of the orders, which motion was granted. At the hearing of the appeal of the motion judge’s decision, the appellant argued that the motion judge erred by not treating contempt as an order of last resort and by not accepting the appellant’s excuse for failing to comply with previous court orders, being that he was allegedly unable to travel in order to attend the medical examination. The ONCA rejected the appellant’s grounds for appeal, stating that … Read More
Ontario Superior Court of Justice Finds Expired Arbitration Award Relevant in Motion for Injunctive Relief
In Rogers v. TELUS Communications Inc., 2023 ONSC 5398, the Ontario Superior Court of Justice held that the terms of an expired arbitration decision are relevant when a party seeks injunctive relief that contradicts its terms. The moving and responding parties are both prominent competitors in the Canadian telecommunications market. Under a requirement imposed by the Government of Canada, their customers have the reciprocal ability to “roam” on the other carrier’s network in areas where their own carrier does not provide coverage. This obligation allows Canadian customers to access wireless services across the country. For a time, the parties did not agree on what was displayed to customers when they were roaming on a competitor’s network. The primary dispute was whether the network identifier (“NID”) displayed in the top-left corner of most mobile devices would connote an extension of their own carrier’s network (i.e. “[Carrier]-EXT”), or if it would notify customers … Read More
Ontario Court Recognizes US Judgment, stating “there are no reasons not to enforce” the US Judgment
In the recent decision of the Ontario Superior Court of Justice (“ONSC”), Runco v. Engenheiro, 2023 ONSC 4767, the applicant sought recognition and enforcement of an order of the Supreme Court of the State of New York, County of Westchester (the “Foreign Judgment”), among other relief, including the appointment of a receiver to sell her apartment building that she jointly owned with the respondent. The Foreign Judgment incorporated the Parties’ divorce agreement and required that the applicant receive US$500,000 in exchange for her interest in the apartment building. The respondent defended the application, citing to multiple reasons why the application should not be granted, including that the Foreign Judgment was not final. The ONSC disagreed, opining that the Foreign Judgment was final because the time to appeal or bring a motion to renew is “well out of time”. The ONSC based its decision on the opinion of an expert witness (an … Read More
Internal Business Disputes in Trades, Subtrades, Contractors and Subcontractors
Internal Business Disputes in Trades, Subtrades, Contractors and Subcontractors Our Business Dispute Practice Group can represent shareholders in dispute with other shareholders and/or directors in Closely Held Businesses, Family Businesses, and Startup Businesses. Often a dispute arises because a shareholder cannot obtain access to financial information, financial statements, financial documents and records of the corporation, voting rights, rights with respect to meetings or fraud. In some circumstances, an application can be made by a shareholder for access to financial information, financial statements and records of the corporation. Shareholders remedies include oppression remedy actions and derivative actions, and the appointment of an auditor or an an inspector. One of our senior business litigation lawyers was a faculty member of the Osgoode PD professional development program concerning Shareholder Litigation and the Closely-Held Company. Oppression Remedy The oppression remedy is a mechanism in the Ontario Business Corporations Act and the Canada Business Corporations Act to protect the interests … Read More
Ontario Court of Appeal Comments on the Oppression Remedy – Oppression is Focused on Fairness and Equity, not on Legal Rights
In the recent decision of the Ontario Court of Appeal (“ONCA”), Pereira v. TYLT Technologies Inc. (TYLTGO), 2023 ONCA 682, the appellant successfully appealed a judgment dismissing his application for an oppression remedy under the Canada Business Corporations Act, RSC 1985, c C-44 (the “CBCA”). The appellant argued that the application judge erred in only considering the appellant’s expectations as an employee and failing to consider his expectations as a shareholder. The ONCA opined that the application judge took an “overly narrow” approach by placing focus mostly on the documents signed by the parties and not considering all of the circumstances. The ONCA considered some of the major principles related to the oppression remedy, including the following: Oppression is an equitable remedy which seeks to ensure fairness. Thus, conduct found to be oppressive does not need to be “unlawful” per se, because oppression is focused on “fairness and equity”, rather … Read More
Recognition of Foreign Judgments – Judgment is Enforceable Regardless of Pending Appeal
In the recent decision of the Ontario Superior Court of Justice (“ONSC”), Acteon v. Verona Medical Group, 2023 ONSC 5140, the plaintiff was successful in obtaining the recognition of a judgment issued by a court in France, the Commercial Court of Bordeaux (the “Summary Proceeding Judgment”), albeit the ONSC stayed the plaintiff’s ability to enforce the Summary Proceeding Judgment in Ontario pending the defendants’ appeal of a related judgment (the “Merits Proceeding Judgment”) in France. The main contentious issue in this recognition proceeding was the defendants’ position that the plaintiff’s Summary Proceeding Judgment was not “final” because of the defendants’ appeal of the Merits Proceeding Judgment in France. The plaintiff’s legal expert advised the ONSC that though the Summary Proceeding Judgment was a “provisional award”, it was still “final, valid, binding and fully enforceable”. The defendants’ legal expert disagreed, positing that the Summary Proceeding Judgment was only an interim decision … Read More
Sabrina Saltmarsh Presents as Part of Panel on Fraud in Real Property Transactions
Sabrina Saltmarsh presented as a Panelist at this year’s Unveiling Scary Issues, Frauds and Failures in Ontario Property Transactions, held by the Ontario Bar Association. The Panel discussion included: A cautionary tale for lawyers about potential signs of fraud in real estate transactions and insights and tips from Lawpro; the role of certificates of pending litigation in the preservation of rights and assets when dealing with fraud in real property transactions; and a discussion of the recent Court of Appeal ruling of Froom v. LaFontaine, 2023 ONSC 318, as it relates to the theory of deferred indefeasibility. Sabrina provided insights to the audience of real estate solicitors and litigators on challenging and unique issues related to fraud litigation and important principles and strategy considerations in obtaining or discharging a certificate of pending litigation related to real property. Lawyers at Gilbertson Davis LLP, have experience in representing parties in fraud litigation … Read More
Bald and Unsubstantiated Allegations May Lift the Presumptive Limit on Costs of $50,000 in anti-SLAPP Motions
We recently blogged on the Ontario Court of Appeal (“ONCA”) decision in Park Lawn Corporation v. Kahu Capital Partners Ltd., 2023 ONCA 129, where the ONCA advised that costs awards in motions brought under s. 137.1 of the Courts of Justice Act, a provision introduced in 2015 to prevent strategic lawsuits against public participation (“SLAPP”), should not generally exceed $50,000 on a full indemnity basis (as the procedure was meant to be “efficient and inexpensive”). In an even more recent decision of the ONCA, Boyer v. Callidus Capital Corporation, 2023 ONCA 311, the ONCA rejected the respondent’s submission that the successful appellant’s claim for costs of $273,111.22 on a full indemnity basis was excessive, citing to the Park Lawn decision referenced above. The ONCA opined that the statutory presumption under s. 137.1 of the Courts of Justice Act is that the successful moving party be awarded its full indemnity costs … Read More
Top Four FAQs for Stepparent Adoptions in Ontario
Many modern blended families wish to reflect their emotional bonds through the adoption of children by their stepparents. Here are four key things to know about stepparent adoptions. The Consent of both parents is required. To proceed with a stepparent adoption of a child, you need to obtain the consent of both of the child’s parents, not just the consent of your spouse. You need to obtain the consent of both parents, even if one parent has not been involved in the child’s life. Often, one parent will refuse to provide their consent or not respond to the request to dispense with their consent. If you are unable to obtain the consent of a parent, you will need to start court proceedings to ask the court to dispense with that parent’s consent to the adoption. The Consent of the Child may be required. If a child is over seven years … Read More
Stepparent Adoptions: Dispensing with a Parent’s Consent
In Ontario, a stepparent who wants to adopt a stepchild less than sixteen years of age needs to obtain the consent of both of the child’s biological parents. Often, one parent will refuse to provide their consent or will not respond to the request to dispense with their consent. If one of the parents does not provide their consent to the adoption, the stepparent will need to ask the court to dispense with that parent’s consent. The court may do so if they are satisfied: The adoption is in the child’s best interests and The parent whose consent is required has received notice of the proposed adoption and of the application to dispense with consent, or a reasonable effort to give notice has been made. The stepparent must meet both criteria for the court to dispense with a parent’s consent to the adoption. The onus is on the stepparent who … Read More
Stay of Court Proceedings in Favour of Arbitration – Standard of Proof
In the recent decision Husky Food Importers & Distributors Ltd. v. JH Whittaker & Sons Limited, 2023 ONCA 260, the Ontario Court of Appeal (“ONCA”) reviewed the law of international commercial arbitration, and in particular opined on the issue of the standard of proof that a party needs to meet in order for the court to grant a stay of a court proceeding pursuant to section 9 of the International Commercial Arbitration Act, 2017 (the “Act”), in favour or arbitration. Section 9 of the Act states as follows: Where, pursuant to article II (3) of the Convention or article 8 of the Model Law, a court refers the parties to arbitration, the proceedings of the court are stayed with respect to the matters to which the arbitration relates. The appellant submitted that the proper analytical framework for assessing a request to stay an action under the Act was set out in the … Read More
Launching New Claim in Face of Limitation Deadline, Where Prior Claim Commenced, Not an Abuse of Process
In the recent Court of Appeal decision of Cipponeri Construction Services Inc. v. Orsi, 2023 ONCA 296, the Court of Appeal grappled with whether it was an abuse of process to commence a new action, in the face of a fast approaching limitation deadline, when there was an existing action already commenced, or whether the proper approach was to seek leave to amend the Statement of Claim in the existing action to add the new claim. The Facts and Background In 2018 an action was commenced by the Respondent on the appeal, Michael Orsi along with his corporation Bearus Holdings ULC against Vito Cipponeri, his corporation 2599109 Ontario Inc (259) and Westin Homes Ltd. (Westin). Mr. Cipponeri and 259 counterclaimed in the 2018 action against Mr. Orsi, Bearus and Westin for, amongst other claims, a payment of money allegedly owing by Westin to the appellant, Cipponeri Construction Services Inc. (CCSI) … Read More
Impact of Divorce or Separation on a Family Business
Family Business Challenges from Divorce or Separation Many businesses in Canada are family businesses or have evolved from family businesses. Family businesses present many unique challenges as they grow should the personal relationships of the key members of the family business change or deteriorate. Divorce and separation can have serious impact upon family-owned and family-run businesses, whether incorporated companies or partnerships. Changes in a family business and the challenges presented by change can often result in legal disputes between interested parties. Family business disputes are often be protracted, expensive, and disruptive, and may even result in the sale, division or winding up of the family business. Impact of Separation and Divorce on Family Businesses Complex questions arise in the division of property and assets when dealing with a family business during a separation or divorce. The value of the family business is included in the equalization of net family property … Read More