A recent case from the Ontario Court of Appeal highlights that commercial parties must take care to ensure that their contracts are certain on essential terms when dealing with unsophisticated counterparties. In Corridor Transport Inc. v. Vittorio Junior Lentini, 2024 ONCA 773, a corporation was set up to carry on business transporting steel products (the “Venture”). 50% of the shares in the Venture were held by a sophisticated businessman (“JH”), and the other 50% were held by a trucking company that operated a separate business from the Venture (“Lentini”). Lentini’s principal left school after the fifth grade and immigrated to Canada from Italy as a young adult. The Venture claimed that JH would provide its startup and expansion capital , and Lentini would manage its day-to-day operations as an independent contractor. The parties agreed that Lentini could continue to operate its separate trucking business while participating in the Venture. … Read More
Divorce and Separation: Spouses jointly owned business’
When parties separate, tensions are high with both parties making lifestyle adjustments, attempting to divide assets and often negotiating parenting arrangements. In the case where parties share business interests or are partners in business, this can lead to increased stress, where the business and therefore the spouses current and future financial security remains entwined with a soon to be ex-spouse’s. In the case of Danecker v. Danecker, 2013 ONSC 1605, the husband and wife were both physiotherapists. Their marriage ultimately broke down in late 2009 and at the date of separation, they were equal partners in an unincorporated physiotherapy clinic. The husband attempted, without success, to set up his own separate clinic but eventually was employed by a local hospital. Upon the separation, the wife bought out the husband’s share of the building and continued to operate for three years without any profits being shared with the husband. As part … Read More