In CHU de Québec-Université Laval v. Tree of Knowledge International Corp., the Court dismissed the appeal of a director and officer of the corporate defendant who was found personally liable for civil fraud arising from the sale of millions of dollars’ worth of masks to a Quebec hospital network during the COVID-19 pandemic. The defendants required prepayment for three million N95 masks for $11 million and delivered zero N95 masks. The Court appeared to simplify the test for finding an officer or director personally liable for fraud. Where there is fraud, the individual officer and director is automatically personally liable. The court need not characterize the fraud as “tortious in itself” or as exhibiting a “separate identity or interest” before finding personal liability
In MCAN Home Mortgage Corporation v. Broad, the Court allowed a mortgagee’s appeal and confirmed that courts have the power to discharge a certificate of pending litigation at the request of a mortgagee seeking to complete a power of sale. The court below had refused to remove the CPL. The Court affirmed that s. 103(6)(c) of the Courts of Justice Act confers a broad discretion to discharge a CPL “on any other ground that is considered just,” which may be invoked by a mortgagee who is not a party to the underlying litigation but whose prior-ranking interest is affected by the CPL’s presence on title. The Court remitted the matter to the Superior Court to determine whether discharge should be granted in new circumstances that had arisen since the order appealed form was made. By the time of the appeal, the prospective sale by the mortgagee had fallen through and the respondent who had registered the CPL had been recognised as the beneficial owner of the property.
In Intercity Realty Inc., Brokerage v. Salerno Realty Inc., the Court dismissed an appeal finding that the Court lacked jurisdiction over a real estate commission dispute that fell within TRREB’s exclusive arbitration process and that Intercity’s action against one of the defendants also constituted an abuse of process. The Court also held that Intercity had irrevocably attorned to TRREB’s jurisdiction and was attempting to relitigate the same issue already determined in the TRREB proceeding.
In Phillips v. Kheil, the court confirmed that an undischarged bankrupt lacks capacity to commence proceedings relating to property vested in the trustee absent express authorization, which cannot be inferred from mere permission to manage the property. It also held that claims framed as “loss of enjoyment and use” will be treated as proprietary, not personal, where they are rooted in damage to the property itself, and therefore such claims vest in the trustee.
In Peoples Trust Company v PSP Services Inc., the Court upheld penalty orders imposed on a company found in contempt for repeatedly obstructing a court-ordered audit. The appeal was dismissed on all grounds, with the court finding the penalties proportionate given the company’s prolonged and intentional non-compliance. The cross-appeal was allowed in part, as the motion judge had misapplied rule 60.11(6) in declining to consider imposing personal liability on the company’s principal for the contempt. That issue was remitted to the motion judge for rehearing.
In Bank of Montreal v. Makhija, the court confirmed that civil fraud requires proof of knowing or reckless misrepresentation and reliance and will not be made out where the defendant reasonably believed the transaction was legitimate and did not make the misrepresentation relied upon.
Table of Contents
Civil Decisions
CHU de Québec-Université Laval v. Tree of Knowledge International Corp., 2026 ONCA 209
Keywords: Intentional Torts, Fraud, Fraudulent Misrepresentation, Corporations, Piercing Corporate Veil, Officers and Directors, Personal Liability, Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, s. 178(1)(e), Bruno Appliance and Furniture, Inc. v. Hryniak, 2014 SCC 8, Housen v. Nikolaisen, 2002 SCC 33, Derry v. Peek (1889), 14 App. Cas. 337 (H.L.), Parna v. G. & S. Properties Ltd., [1971] S.C.R. 306, Hearn v. McLeod Estate, 2019 ONCA 682, Precision Drilling Canada Limited Partnership v. Yangarra Resources Ltd, 2017 ABCA 378, Noble v. Fuller, 1985 CarswellBC 4167 (S.C.), ScotiaMcLeod Inc. v. Peoples Jewellers Ltd. (1995), 26 O.R. (3d) 481 (C.A.), Normart Management Ltd. v. West Hill Redevelopment Co. (1998), 37 O.R. (3d) 97 (C.A.), ADGA Systems International Ltd. v. Valcom Ltd. (1999), 43 O.R. (3d) 101 (C.A.), leave to appeal refused, [1999] S.C.C.A. No. 124, Ontario Store Fixtures Inc. v. Mmmuffins Inc. (1989), 70 O.R. (2d) 42 (H.C.J.), XY, LLC v. Zhu, 2013 BCCA 352, riving Force Inc v. I Spy-Eagle Eyes Safety Inc, 2022 ABCA 25, Contex Drouzhba Ltd. v. Wiseman, [2007] EWCA Civ 1201, Axiom Foreign Exchange International v. Rudiger Marketing Ltd., 2024 ABKB 224, Hall v. Stewart, 2019 ABCA 98, Merrifield v. Canada (Attorney General), 2019 ONCA 205, Merrifield v. Canada (Attorney General), 2019 ONCA 205, Paulus v. Fleury, 2018 ONCA 1072, Midland Resources Holding Limited v. Shtaif, 2017 ONCA 320
MCAN Home Mortgage Corporation v. Broad, 2026 ONCA 217
Keywords: Contracts, Real Property, Mortgages, Enforcement, Power of Sale, Civil Procedure, Certificates of Pending Litigation, Statutory Interpretation, Courts of Justice Act, R.S.O. 1990, c. C.43, ss. 103(1), 103(2), 103(6)(c), 103(6)(d), 103(7), Mortgages Act, R.S.O. 1990, c. M.40, ss. 2, 31(1), 32, 33, 34, 35, Land Titles Act, R.S.O. 1990, c. L.5, ss. 99, 99(1), 99(1.1), 99(2), Royal Canadian Mortgage Investment Corp. v. Mendes, 2019 ONSC 6039, Royal Canadian Mortgage Investment Corporation v. Myles Mendes et al. (December 11, 2019), Toronto, CV-19-00675619-0000 (Ont. Sup. Ct.), G.P.I. Greenfield Pioneer Inc. v. Moore (2002), 58 O.R. (3d) 87 (C.A.), Brock v. Crawford (1908), 11 O.W.R. 143, (H.C.), Lawrence v. Wright, 2007 ONCA 74, Ministry of Government and Consumer Services, Electronic Registration Procedures Guide, Version 12 (Toronto: Queen’s Printer for Ontario, 2017)
Intercity Realty Inc., Brokerage v. Salerno Realty Inc., Brokerage, 2026 ONCA 212
Keywords: Contracts, Real Property, Brokers, Commissions, Civil Procedure, Arbitration, Jurisdiction, Striking Pleadings, Abuse of Process, Real Estate and Business Brokers Act, 2002, S.O. 2002, c. 30, Schedule C, rr. 21.01(3)(a), 25.11, Rules of Civil Procedure, r. 21.01(3)(a), 25.11, TeleZone Inc. v. Canada (Attorney General), 2008 ONCA 892, Danyluk v. Ainsworth Technologies Inc., 2001 SCC 44, The Catalyst Capital Group Inc. v. VimpelCom Ltd., 2019 ONCA 354, Metropolitan Toronto Condominium Corporation No. 1352 v. Newport Beach Development Inc., 2012 ONCA 850, Toronto (City) v. C.U.P.E., Local 79, 2003 SCC 63
Phillips v. Kheil, 2026 ONCA 215
Keywords: Bankruptcy and Insolvency, Property of the Bankrupt, Choses in Action, Civil Procedure, Striking Pleadings, Capacity, Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, s. 71, s. 2, s. 30, Rules of Civil Procedure, r. 21.01, Little (Nautilus North Strength and Fitness Centre) v. Bramcan Investments Limited, 2025 ONCA 86, Antrim Truck Centre Ltd. v. Ontario (Transportation), 2013 SCC 13, GMAC Commercial Credit Corporation — Canada v. T.C.T. Logistics Inc., 2006 SCC 35, Aquino v. Bondfield Construction Co., 2024 SCC 31, Kirschner v. Moore, 2023 BCSC 450, Spiroulias c. Chriscon Investments Ltd., 2006 QCCS 2019, Stec v. Blair, 2021 ONSC 6212, Re Holley (1986), 54 O.R. (2d) 225 (C.A.), Meisels v. Lawyers Professional Indemnity Company, 2015 ONCA 406, Wallace v. United Grain Growers Ltd., [1997] 3 S.C.R. 701, Housen v. Nikolaisen, 2002 SCC 33
Peoples Trust Company v. PSP Services Inc., 2026 ONCA 22
Keywords: Contracts, Remedies, Audit Rights, Civil Procedure, Orders, Enforcement, Contempt, Investigative Receiverships, Corporations, Piercing Corporate Veil, Officers and Directors, Personal Liability, Rules of Civil Procedure, r. 60.11(6)
Bank of Montreal v. Makhija, 2026 ONCA 221
Keywords: Intentional Torts, Fraud, Fraudulent Misrepresentation, Motkoski Holdings Ltd. v. Yellowhead (County), 2010 ABCA 72, Canadian Imperial Bank of Commerce v. Deloitte & Touche, 2016 ONCA 922, Bruno Appliance and Furniture, Inc. v. Hryniak, 2014 SCC 8, Turbo Logistics Canada Inc. v. HSBC Bank Canada, 2013 ONSC 7128, Buccilli et al. v. Pillitteri et al., 2012 ONSC 6624, Panapers Inc. v. 1260539 Ontario Limited, 2007 ONCA 27, National Steel Car Limited v. Independent Electricity System Operator, 2024 ONCA 265
Short Civil Decisions
Bryan v. Miguna, 2026 ONCA 226
Keywords: Contracts, Real Property, Mortgages, Civil Procedure, Limitation Periods, Fraudulent Concealment, Summary Judgement
Keywords: Property Law, Remedies, Resulting Trust, Civil Procedure, Costs
Hartin v. Hynes, 2026 ONCA 227
Keywords: Torts, Negligence, Vicarious Liability, Civil Procedure, Third Party Claims, Dog Owners’ Liability Act, R.S.O. 1990, c. D.16, Hav-A-Kar Leasing Ltd. v. Vekselshtein, 2012 ONCA 826
Lakehead District School Board v. Mauro, 2026 ONCA 230
Keywords: Intellectual Property, Copyright, Civil Procedure, Summary Judgment, Copyright Act, R.S.C. 1985, c. C-42, s. 35(2)
Murray v. Toronto-Dominion Bank, 2026 ONCA 210
Keywords: Contracts, Torts, Conversion, Detinue, Civil Procedure, Summary Judgment
Foch v. Sharon Gun Club, 2026 ONCA 218
Keywords: Contracts, Releases, Civil Procedure, Settlements, Enforcement, Striking Pleadings, Abuse of Process, Standing, Limitation Periods
Leduc v. Dufour, 2026 ONCA 219
Keywords: Contracts, Solicitor and Client, Contingency Fee Agreements, Civil Procedure, Costs