In the News

Ex-Lovers’ Quarrel: Was It a Gift or a Loan?

Here’s a classic dispute between former lovers.

The boyfriend gave the girlfriend money to buy a car. The two broke up. The girlfriend sold the car. The boyfriend wanted his money back. He said it was a loan; she said it was a gift.

Who was right?

In the recent decision of Devries Financial Group Inc. v. Duggan, the judge held that it was neither a loan nor a gift.* Rather, it was a resulting trust.

In Devries, the boyfriend sued in the capacity of a corporation. (I suspect that the plaintiff wanted to distance his former relationship with the defendant, but this is only my speculation.) However, the judge found that the plaintiff corporation and its sole director and shareholder, Mr. Devries, were indistinguishable for the purposes of deciding the lawsuit.

Mr. Devries, a sophisticated licensed financial adviser, advanced the funds to the defendant (then-girlfriend) Ms. Duggan to buy a car. Soon after, the relationship turned sour and the two broke up.

Ms. Duggan decided that she could no longer afford the car after the breakup and sold the car for a significant loss. Mr. Devries wanted to recover the funds from her.

The judge found that Mr. Devries couldn’t establish the transfer of the funds as a loan in the face of Ms. Duggan’s denial. The judge reasoned that, given Mr. Devries’s profession (a licensed financial adviser), it was unlikely that he would have advanced funds without proper instruments if the transaction were a loan.

Rather, the judge reasoned that the advancement of funds for the purchase of a car created a rebuttable presumption of result trust. When the transaction is challenged, the onus is on the transferee to establish that a gift was intended.

In this case, the judge reasoned that it was unlikely the funds were transferred as a gift given the short duration of the relationship.

In the absence of additional evidence supporting the transfer of the funds as a gift, the defendant was declared as a trustee of the car and ordered to repay the funds, after deducting her financial loss, depreciation, and unpaid services in the amount of $8,000.

* 2011 ONSC 3773, 106 O.R. (3d) 682 (sm. cl. ct.)

This blog is provided for your reference only and is not a substitute for the law. The law may have changed since the publication of this article. This article is not legal advice and should not be regarded as such.

Can “Too Much” Medical Care Amount to Child Abuse?

When most people think of child abuse and neglect, a certain grim picture comes to mind. The neglected or abused child may be malnourished or suffering from psychological, physical, or sexual abuse.

The recent case involving a family featured on the popular reality TV series Extreme Makeover: Home Edition raises an issue not commonly seen in child protection proceedings: unnecessary and excessive medical treatment that amounts to child abuse.

The Cerda family, living in Las Vegas at the time, pleaded with the producers of the show for rescue from their mould-filled house. The toxic environment was making life very difficult for the mother and the two daughters, who suffered from serious immune disorders.

The Cerdas’ story seemed to have struck a chord with the producers of the show.

The producers paid to demolish the Cerda family’s old house and built, from the ground up, an opulent new home equipped with a top-grade air filtration system, an elevator, a solar-heated swimming pool, and a gourmet kitchen, to name just a few of the highlights.

Alas, because of “the increased cost” of operating the home, the family put up their new-and-improved place for sale and moved to Oregon.

But as fate would have it, after the move, the Cerda family’s high profile attracted the attention of the child welfare agencies. Several doctors and social workers began to question the mother’s insistence on the chronic medical conditions of her daughters in the face of contradictory lab results.

In February 2011, the State of Oregon took temporary custody of the two children. In the legal proceeding that ensued, six doctors testified on the State’s behalf that the two children did not live in constant medical peril as claimed by the mother.*

The court was told by one expert witness, called by the State, that the children suffered from medical abuse, namely excessive and unnecessary medical interventions that could result in psychological and emotional harm.

The family’s lawyer called the mother to testify about the medical history of the children. However, no doctors were called by the defense.

Judge Norby of the Clackamas County Circuit Court in Oregon found the mother unconvincing. She called the mother’s conduct “excessive and unjustifiable.” Nevertheless, the judge ruled that the father was a capable parent and could take care of the children’s medical needs. She ordered that the two children be returned to the parents.

This case took place in Oregon and not Ontario; therefore, it may or may not be relevant to Ontario cases. However, it reminds us that abuse can take many forms, including too much medical care.

* Citation currently unavailable.

This blog is provided for your reference only and is not a substitute for the law. The law may have changed since the publication of this article. This article is not legal advice and should not be regarded as such.

Opening of the Courts and Divine Interfaith Service – September 13, 2011

Members of the judiciary, lawyers, and paralegals are invited to attend a Special Divine Interfaith Service to mark the Opening of the Courts on September 13, 2011.

The Divine Interfaith Service will be held at the Church of the Holy Trinity at 10 Trinity Square, Toronto, by the Eaton Centre, at 10:00 am.

The traditional Opening of the Courts of Ontario ceremony will be held at Courtroom 6-1, Toronto Court House, 361 University Ave., at 3:30 pm.

At the conclusion of the Opening of the Courts, the Law Society of Upper Canada will host a reception for members of the judiciary, lawyers, and paralegals in the Convocation Hall at Osgoode Hall, 130 Queen St. W., Toronto, at 4:30 pm. Guests should enter the building through the main doors on the east side of Osgoode Hall.

California Budget Cutbacks Cut Deep into Family Law Courts; Litigants Face Long Delays

Alas, no one gets a quick divorce in California anymore. The state of California, on the brink of fiscal disaster, is axing funding to the administration of civil justice. That means longer delays in getting anything done, including a divorce.*

In San Francisco alone, 25 courtrooms will be closed and more than 175 employees will be laid off this fall. Presiding judge Katherine Feinstein of San Francisco Superior Court estimated that the average time for a divorce would be at least 18 months. All other civil matters, including small claims, civil and class-action lawsuits, probate, and bit-money complex cases, will take longer.

However, San Francisco isn’t alone when it comes to budget cuts. Judge Steve White of the Superior Court in Sacramento, the state capital, said that their service windows have been reduced from 10 to 2, leading to waits of five or six hours. People now bring lawn chairs and arrive before the counters are open.

In Ontario, the average wait time for an uncontested divorce in Toronto is 4 to 6 months.+

* Jesse McKinley, “As Budgets Continue to Shrink, The Lines Will Grow in California Civil Courts,” The New York Times (24 August 2011), online: The New York Times <http://www.nytimes.com/2011/08/24/us/24courts.html?_r=1&pagewanted=1#>

+This is my personal estimate. The actual wait time will vary.

Matrimonial Revenge Served Piping Hot… and Backfiring

The Globe and Mail published an article on “divorce pranks” today.* They include the following:

  • Ex-husband dumped a 20-ton rock on ex-wife’s driveway, spray-painted “Bonne Fete” (happy birthday) and topped with a pink bow. The explanation: “She never had a rock big enough.”
  • Wine collector husband left the matrimonial home. Wife went to the wine cellar, steam-peeled the labels off, and then mixed the bottles up.
  • Wife poured the husband’s wine collection down the sewer.
  • Wife disabled the husband’s car when it was discovered in a compromising position, parked in front of the mistress’s house.
  • Wife went on a shopping spree on the husband’s secondary credit card before it was cancelled.
  • Husband stapled a spider to his cheque for spousal support, which the wife must endorse to cash it.

Readers are warned not to try any of these acts of revenge (and stupidity) because they almost always backfire. In fact, I’ve never come across one that hasn’t. These pranks inevitably will be submitted into evidence, which makes the judge wonder, “What else is this person capable of doing?”

Divorce is a traumatic experience. Don’t let the emotions take over the better part of you. Do what’s rational and logical, and try to resolve the situation. We’re here to help.

*Zosia Bielski, “Divorce Pranks: You Might Think It’s Funny, but the Judge Won’t Laugh,” The Globe and Mail (19 August 2011) Online: The Globe and Mail <http://www.theglobeandmail.com/life/relationships/love/divorce/divorce-pranks-you-might-think-its-funny-but-the-judge-wont-laugh/article2134193/>

Major Pet Store Chain Announces End of Puppy Sales: The Evils of Puppy Mills

Major pet store chain PJ’s Pets has announced that its stores will stop selling puppies on September 1, 2011, reports The Toronto Star.+ Rather than sell puppies, the chain will promote pet adoption from animal shelters or humane societies.

I applaud this decision. Puppies available for sale at retailers are often purchased from brokers that provide the retailers with puppies that are competitively priced but of questionable origins.

Many puppies sold at retail stores are from “puppy mills,” where mother dogs are constantly impregnated without regard to their health. The environment of puppy mills is typically unsanitary and overcrowded.

The mother dogs are typically confined in small cages without exercise or adequate care. They may spend their days in their own feces and urine. Some are put in stacked cages with wire flooring that injures their paws and legs. Some spend their entire useful life outdoors without shelter from the elements. Serious medical conditions that are common at puppy mills include malnutrition, parasites, urine burns, rotten teeth, severely overgrown nails, matted fur, skin diseases, blindness, ear infections, wire cuts and open wounds, and overall weakness.

Once the breeding dog has gone beyond its prime (usually at 4 years of age), it is often discarded, abandoned, or killed. The lucky ones are shot; the unlucky ones are starved to death.

The misery isn’t confined to the mother dogs. Upon their arrival at the retailer, the puppies are left in the display windows for prolonged periods of time without adequate care, socialization, or exercise. Prolonged isolation, inadequate care, and lack of socialization are detrimental to a puppy’s overall development. Because of the mistreatment of mother dogs, store-bought puppies are often born with defects that lead to a lifetime of poor health.

At times, new pet parents discover serious health problems in their new pets shortly after the purchase. When this happens, the new pet owner faces a grim dilemma of either putting the pet down or facing substantial veterinary expenses. (Most retailers do not accept returns.) Perhaps a handful of owners sue in small claims court for damages, with limited success.

Such are the evils of puppy mills.

+Vanessa Lu, “PJ’s Pets Ends Puppy Sales” The Toronto Star (16 August 2011) online: <http://www.thestar.com/business/article/1040266>

On Publication Bans and Sealing Orders in Family Law: The Partial Publication Ban on Russell Williams’s Divorce

On April 12, 2011, Justice Mackinnon of the Superior Court of Justice granted the wife of convicted murderer Russell Williams, now identified as M.E.H., an anonymity order and a partial publication ban on the details of their divorce.*

By motion, the wife sought to have the entire matrimonial proceeding sealed to protect her fragile mental health as a result of Mr. Williams’s convictions for first-degree murder, sexual assault, and forcible confinement and the ensuing public and media attention. The motion was opposed by a number of media intervenors.

It’s said that a sealing order is a blunt tool. It will adversely affect a democratic society’s reliance on a transparent and open judiciary. Therefore, a complete sealing order is rare, except in a handful of areas, such as when dealing with young offenders.

In fact, the Supreme Court of Canada has long taken the open court principle very seriously. In 1989, the Supreme Court of Canada struck down provisions in Alberta’s Judicature Act prohibiting publication of most details of matrimonial proceedings.^

More recently, the Supreme Court of Canada restated the importance of the open court principle in Canadian Broadcasting Corp. v. Canada (A.G.).+ Justice Deschamps stated that the open court principle “ensures that citizens have access to the courts and can, as a result, comment on how courts operate and on proceedings that take place in them.”

At the same time, the open court principle also mandates access to justice by citizens. The proper administration of justice must allow litigants access to the court to obtain relief that they are lawfully entitled to without sacrificing their mental and physical health by doing so. For example, victims of sexual assault should be afforded protection of anonymity, lest one more deterrent discourage such victims from coming forward.#

In the present case, the judge found that the wife had demonstrated she would face real risks to her mental health (e.g., beyond personal embarrassment and discomfort) if a privacy order were not granted. At the same time, a sweeping sealing order keeping the entire file from the public was seen to be unjustified as it would have too great an impact on the open court principle.

In striking the delicate balance of the public interest and the real risks of harm to the wife, the judge deemed it appropriate to place a partial publication ban on information that serves to identify the name, address, or contact information of the wife. Sensitive information, such as medical reports, social insurance number, date and place of the wife’s birth, and certain financial transfers were also banned from publication.

*H.(M.E.) v. Williams (2011), 105 O.R. (3d) 344 (Sup. Ct.)

^Edmonton Journal v. Alberta (A.G.), [1989] 2 S.C.R. 1326, S.C.J. No. 124

+[2011] S.C.J. No. 2, 2011 SCC 2

#T.(S.) v. Stubbs (1998) 38 O.R. (3d) 788 (Gen. Div.)

This blog is provided for your reference only and is not a substitute for the law. The law may have changed since the publication of this article. This article is not legal advice and should not be regarded as such.

Ontario Rolls Out Procedural Reform on Family Law; Information Session Now Mandatory Province-Wide

Effective today, Monday, July 18, 2011, all Ontarians who seek a divorce must attend a mandatory information session before the divorce application may be filed.

Once the parties have attended the mandatory information session, they have access to publicly funded mediation services if they wish to resolve their differences privately.

For couples in Toronto, the mandatory family law information session isn’t something new, however. It has been mandatory in Toronto for the past several years. It is now made compulsory throughout the province.

From my experience, the mandatory information session is too little, too late. By the time the matter reaches the court, the parties may have become too positional for any meaningful interest-based alternative dispute resolution to work.

I contend that the mandatory family law information session, while it may be helpful to some, doesn’t go far enough. A program such as a mandatory mediation session (i.e., a claim cannot be filed without a mediator’s certificate of completion) may be necessary to implement real change.

Bell Canada Settles Complaint on Misleading Advertisements; Agrees to Pay $10 Million Fine

Bell Canada recently settled a complaint brought by the Commissioner of Competition with respect to misleading advertising under the federal Competition Act* by filing a consent agreement with the regulating tribunal. Under the terms of the settlement, Bell Canada is obliged to pay an administrative fine of $10 million, which is the maximum monetary penalty available under the legislation.

The Commissioner of Competition alleged that many of the services by Bell aren’t available at the advertised price because of hidden fees. For example, consumers who pay the advertised home phone service price must also pay a touch tone fee. Similarly, in providing high-speed internet, Bell charges modem rental fees in addition to the advertised price.

Toronto lawyers James B. Musgrove and Daniel G. Edmondstone of McMillan LLP think that the Commissioner’s pursuit of the maximum administrative fine may be the clearest message to retailers who utilize “add-on” or “hidden fee” advertising structures.

In addition to the administrative fine, Bell Canada also agreed to pay for the Commissioner’s legal fees in the amount of $100,000.

*R.S.C. 1985, c C-34

Toronto Man Accused of Animal Cruelty Charges; Alleged to Have Attacked Baby Raccoon with Shovel in His Backyard

Photograph used under licence by stock.xchng; all rights reserved.

A Toronto man is facing charges of animal cruelty and possession of a weapon for dangerous purposes for allegedly attacking a family of raccoons with a shovel in his backyard last month.

Witnesses recalled being awakened by the sound of the man allegedly attacking a family of raccoons in his backyard on June 1, 2011. Police were called soon after.

The crown prosecutor told the court that it will proceed through a lesser charge of summary conviction, rather than by indictment. If convicted by indictment, the accused would have faced up to 10 years of imprisonment for the weapon charge.

Under the summary conviction proceeding, the accused risks 2 years in custody.

Animal Services found that one baby raccoon suffered from broken toes and was sent to a rehabilitation centre for treatment. The conditions of the rest of the raccoons are unknown as the mother took the babies away.

The allegations have not been proven in court. The accused is considered innocent until proven guilty.

Regardless of the outcome, I can’t stress enough that violence is never a solution in a free and democratic society like ours. If you feel your home is being invaded by unwanted animals - be they raccoons, snakes, or wasps - it’s perhaps best to contact animal services or a private wildlife control company so the intruders may be removed humanely. Anyone who beats a baby raccoon with a shovel is both barbaric and cowardly and is condemned by this office.

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