Amertek Inc. et al. v. Canadian Commercial Corp. et al., [2003] O.T.C. 742 (SC)

• Judge: O'Driscoll, J.
• Court: Superior Court of Justice of Ontario (Canada)
• Case Date: August 07, 2003
• Jurisdiction: Ontario
• Citations: [2003] O.T.C. 742 (SC)

Amertek Inc. v. Cdn. Com. Corp., [2003] O.T.C. 742 (SC)

MLB headnote and full text

Temp. Cite: [2003] O.T.C. TBEd. AU.037

Amertek Inc., Amerkon Capital Corporation, Linda Forder, Executor and Trustee under the Last Will and Testament of William Forder, deceased, and Victor Mele (plaintiffs) v. Canadian Commercial Corporation, Attorney General of Canada and First Investors Capital Corporation (defendants)

(Court File No. 96-CU-113354)

Indexed As: Amertek Inc. et al. v. Canadian Commercial Corp. et al.

Court of Ontario

Superior Court of Justice

O'Driscoll, J.

August 7, 2003 and October 6, 2003 and December 22, 2003.

Summary:

This headnote contains no summary.

Bankruptcy - Topic 2287

Proposals - Voting - Voting for an improper purpose - See paragraphs 475 to 487.

Contracts - Topic 1484

Formation of contract - Collateral contracts - What constitutes a collateral contract - See paragraphs 454 to 458.

Contracts - Topic 2253

Terms - Conditions and warranties - What constitutes a warranty - See paragraphs 454 to 458.

Contracts - Topic 4062

Remedies for breach - Accounting of profits (disgorgement) - When available or appropriate - See paragraphs 462 to 467 and 522 to 533.

Crown - Topic 1536

Torts by and against Crown - Liability of Crown for acts of servants - Abuse of power - See paragraphs 490 to 495.

Crown - Topic 5145

Officials and employees - Liability of officials in tort - Misfeasance - See paragraphs 490 to 495.

Damage Awards - Topic 2027.4

Exemplary or punitive damages - Deceit or misrepresentation - See paragraphs 504 to 517.

Damages - Topic 1301.5

Exemplary or punitive damages - Deceit or misrepresentation - See paragraphs 504 to 517.

Equity - Topic 1482

Equitable principles respecting relief - Clean hands doctrine - Application of - See paragraph 502.

Equity - Topic 3606

Fiduciary or confidential relationships - General principles - What constitutes a fiduciary relationship - See paragraphs 387 to 421.

Equity - Topic 3611

Fiduciary or confidential relationships - General principles - Crown - See paragraphs 387 to 421.

Equity - Topic 3644

Fiduciary or confidential relationships - Breach of fiduciary relationship - Nondisclosure - Effect of - See paragraphs 387 to 425.

Equity - Topic 3649

Fiduciary or confidential relationships - Breach of fiduciary relationship - Conflict of interest - See paragraphs 387 to 425.

Equity - Topic 3681

Fiduciary or confidential relationships - Use of fiduciary position for profit or gain - General - See paragraphs 387 to 425.

Equity - Topic 3714

Fiduciary or confidential relationships - Commercial relationships - Duty of disclosure - See paragraphs 387 to 425.

Equity - Topic 3719

Fiduciary or confidential relationships - Commercial relationships - Professional advisory relationships - See paragraphs 387 to 425.

Estoppel - Topic 379

Estoppel by record (res judicata) - Res judicata as a bar to subsequent proceedings - Cause of action - See paragraphs 496 to 503.

Evidence - Topic 209

Inferences and weight of evidence - Inferences - Inference from possession - Of a document - See paragraphs 330 to 343.

Evidence - Topic 2401

Special modes of proof - Presumptions - Specific presumptions - Inference from failure to call or adduce available evidence - See paragraphs 344 to 350.

Evidence - Topic 2401.3

Special modes of proof - Presumptions - Specific presumptions - Inference of knowledge from possession of documents - See paragraphs 330 to 343.

Evidence - Topic 3604

Documentary evidence - Private documents - Memoranda and statements - Government - See paragraphs 330 to 343.

Fraud and Misrepresentation - Topic 6

Fraudulent misrepresentation (deceit) - General principles - What constitutes deceit or fraudulent misrepresentation - See paragraphs 373 to 386.

Interest - Topic 3519

Statutory interest - On judgments - Simple or compound interest - See paragraphs 518 to 521.

Interest - Topic 5010

Interest as damages (prejudgment interest) - General principles - Calculation of interest - Simple or compound - See paragraphs 518 to 521.

Practice - Topic 7429

Costs - Solicitor and client costs - Measure of solicitor and client costs - Counsel fees (incl. premium) - See paragraphs 571 to 605.

Restitution - Topic 62

Unjust enrichment - General - What constitutes - See paragraphs 468 to 474.

Restitution - Topic 128

Unjust enrichment - Remedies - Waiver of tort - See paragraphs 369 to 372.

Torts - Topic 6254

Abuse of legal procedure - Abuse of process - What constitutes - See paragraphs 475 to 489.

Torts - Topic 9162

Duty of care - Particular relationships - Claims against public officials, authorities or boards - Misfeasance in or abuse of public office - See paragraphs 490 to 495.

Cases Noticed:

Amertek Inc., Re, [1998] O.T.C. Uned. 258; 4 C.B.R.(4th) 23 (Gen. Div.), refd to. [para. 324].

Kaytor v. Lion's Driving Range Ltd. (1962), 40 W.W.R.(N.S.) 173 (B.C.S.C.), refd to. [para. 344].

Vieczorek et al. v. Piersma et al. (1987), 18 O.A.C. 308; 16 C.P.C.(2d) 62 (C.A.), refd to. [para. 345].

R. v. Pressley (1948), 94 C.C.C. 29 (B.C.C.A.), folld. [para. 352].

Canson Enterprises Ltd. et al. v. Boughton & Co. et al., [1991] 3 S.C.R. 534; 131 N.R. 321; 6 B.C.A.C. 1; 13 W.A.C. 1; 85 D.L.R.(4th) 129; [1992] 1 W.W.R. 245; 61 B.C.L.R.(2d) 1, refd to. [para. 368].

United Australia Ltd. v. Barclay's Bank Ltd., [1941] A.C. 1; [1940] 4 All E.R. 20 (H.L.), refd to. [para. 370].

Derry v. Peek (1889), 14 App. Cas. 337 (H.L.), refd to. [para. 373].

Smith New Court Securities Ltd. v. Scrimgeour Vickers (Asset Management) Ltd. et al., [1997] A.C. 254; 206 N.R. 30 (H.L.), refd to. [para. 378].

Sidhu Estate v. Bains et al. (1996), 77 B.C.A.C. 116; 126 W.A.C. 116 (C.A.), leave to appeal dismissed (1997), 209 N.R. 80; 89 B.C.A.C. 240; 145 W.A.C. 240 (S.C.C.), refd to. [para. 379].

Martel Building Ltd. v. Canada, [2000] 2 S.C.R. 860; 262 N.R. 285, refd to. [para. 388].

International Corona Resources Ltd. v. LAC Minerals Ltd., [1989] 2 S.C.R. 574; 101 N.R. 239; 36 O.A.C. 57; 61 D.L.R.(4th) 14; 35 E.T.R. 1; 44 B.L.R. 1, refd to. [para. 392].

978011 Ontario Ltd. v. Cornell Engineering Co. (2001), 144 O.A.C. 262; 53 O.R.(3d) 783 (C.A.), leave to appeal refused (2001), 284 N.R. 199; 158 O.A.C. 195 (S.C.C.), refd to. [para. 393].

Quebec v. Bank of Montreal, [1979] 1 S.C.R. 565; 25 N.R. 330, refd to. [para. 396].

Wolff (Rudolph) & Co. and Noranda Inc. v. Canada, [1990] 1 S.C.R. 695; 106 N.R. 1; 39 O.A.C. 1; 69 D.L.R.(4th) 392, refd to. [para. 398].

Northern Territory of Australia v. Skywest Pty. Ltd. (1987), 48 N.T.R. 20 (Aust.), refd to. [para. 399].

Banque de Montréal et autre v. Hydro-Québec et autres, [1992] 2 S.C.R. 554; 138 N.R. 185; 48 Q.A.C. 241, refd to. [para. 401].

Snyder-Lynch Motors Inc. v. United States (1961), 292 F.2d 907, refd to. [para. 403].

Helene Curtis Industries Inc. v. United States (1963), 160 C.T.C.L. 437; 312 F.2d 774, refd to. [para. 404].

G.A.F. Corp. v. United States (1991), 932 F.2d 947 (Fed. Cir.), cert. denied (1992), 112 S. Ct. 965, refd to. [para. 405].

First Trenton National Bank v. United States (1970), 15 C.C.F. 83 (Ct. Cl.), refd to. [para. 406].

Laskin v. Bache & Co. (1972), 23 D.L.R.(3d) 385 (Ont. C.A.), refd to. [para. 412].

Guerin v. Canada, [1984] 2 S.C.R. 335; 55 N.R. 161; [1985] 1 C.N.L.R. 120; 13 D.L.R.(4th) 321, refd to. [para. 413].

Frame v. Smith and Smith, [1987] 2 S.C.R. 99; 78 N.R. 40; 23 O.A.C. 84; 42 D.L.R.(4th) 81; 9 R.F.L.(3d) 225, refd to. [para. 415].

Canadian Aero Service Ltd. v. O'Malley, [1974] S.C.R. 592, refd to. [para. 422].

Fellowes, McNeil v. Kansa General International Insurance Co. et al. (1998), 79 O.T.C. 241; 40 O.R.(3d) 456 (Gen. Div.), refd to. [para. 450].

Interamerican Transport Systems Inc. v. Canadian Pacific Express & Transport Ltd., [1995] O.J. No. 3644 (Gen. Div.), refd to. [para. 451].

Fenwick v. Parklane Nurseries Ltd. (1996), 32 C.L.R.(2d) 25, refd to. [para. 452].

Heilbut, Symons & Seal v. Buckleton, [1911-13] All E.R. Rep. 83 (H.L.), refd to. [para. 455].

Bentley (Dick) Productions Ltd. et al. v. Smith (Harold) (Motors) Ltd., [1965] 2 All E.R. 65 (C.A.), refd to. [para. 456].

Attorney General v. Blake, [2000] 4 All E.R. 385; [2001] 1 A.C. 268 (H.L.), refd to. [para. 464].

Esso Petroleum Co. v. Niad, [2001] E.W.J. No. 571-5 (H.C.), refd to. [para. 464].

Becker v. Pettkus, [1980] 2 S.C.R. 834; 34 N.R. 384; 19 R.F.L.(2d) 165; 117 D.L.R.(3d) 257; 8 E.T.R. 143, refd to. [para. 469].

Peel (Regional Municipality) v. Ontario, [1992] 3 S.C.R. 762; 144 N.R. 1; 59 O.A.C. 81; 98 D.L.R.(4th) 140, refd to. [para. 471].

Dimples Diapers Inc. v. Paperboard Industries Corp. (1992), 15 C.B.R.(3d) 204 (Ont. Gen. Div.), refd to. [para. 476].

Laserworks Computer Services Inc. (Bankrupt), Re (1998), 165 N.S.R.(2d) 296; 495 A.P.R. 296 (C.A.), refd to. [para. 487].

Odhavji Estate et al. v. Woodhouse et al. (2000), 142 O.A.C. 149; 52 O.R.(3d) 181 (C.A.), folld. [para. 490].

Three Rivers District Council et al. v. Bank of England, [2000] 3 All E.R. 1; 257 N.R. 1 (H.L.), refd to. [para. 491].

Rookes v. Barnard, [1964] 1 All E.R. 367 (H.L.), refd to. [para. 505].

Walker and Walker Brothers Quarries Ltd. v. CFTO Ltd. et al. (1987), 19 O.A.C. 10; 59 O.R.(2d) 102 (C.A.), refd to. [para. 506].

Whiten v. Pilot Insurance Co. et al., [2002] 1 S.C.R. 595; 283 N.R. 1; 156 O.A.C. 201; 209 D.L.R.(4th) 257, refd to. [para. 507].

Bank of America Canada v. Mutual Trust Co. et al., [2002] 1 S.C.R. 601; 287 N.R. 171; 159 O.A.C. 1, refd to. [para. 519].

Lawyers' Professional Indemnity Co. et al. v. Geto Investments Ltd. et al., [2002] O.T.C. 78 (Sup. Ct.), refd to. [para. 577].

TransCanada Pipelines Ltd. v. Potter Station Power Limited Partnership et al. (2003), 172 O.A.C. 379 (C.A.), refd to. [para. 577].

Maranda v. Leblanc (2003), 311 N.R. 357 (S.C.C.), refd to. [para. 579].

Maranda v. Richer - see Maranda v. Leblanc.

Descôteaux et al. v. Mierzwinski et al., [1982] 1 S.C.R. 860; 44 N.R. 462, refd to. [para. 580].

C.R. et al. v. Morana et al. (1997), 53 O.T.C. 168; 37 O.R.(3d) 342 (Gen. Div.), refd to. [para. 585].

C.R. et al. v. Morana et al. (2000), 135 O.A.C. 123; 49 O.R.(3d) 157 (C.A.), refd to. [para. 586].

Finlayson et al. v. Roberts et al. (2000), 136 O.A.C. 271 (C.A.), refd to. [para. 587].

Jack v. Kirkrude et al., [2000] O.T.C. 938; 2000 CarswellOnt 4969 (Sup. Ct.), affd. (2002), 155 O.A.C. 28 (C.A.), refd to. [para. 589].

Dybongco-Rimando Estate et al. v. Jackiewicz et al., [2003] O.T.C. 152 (Sup. Ct.), refd to. [para. 591].

Dybongco-Rimando Estate v. Lee - see Dybongco-Rimando Estate et al. v. Jackiewicz et al.

Hodgson v. Canadian Newspapers Co. et al., [2003] O.T.C. 619 (Sup. Ct.), refd to. [para. 592].

Christian Brothers of Ireland in Canada, Re (2003), 178 O.A.C. 355 (C.A.), refd to. [para. 594].

Authors and Works Noticed:

American Law Institute, Restatement of the Law of Torts (1937), s. 1 [para. 470].

Bishop, William, A Theory of Administrative Law (1990), 19 J. of Legal Studies 489, p. 501 [para. 461].

Clerk, John F., and Lindsell, The Law of Torts (18th Ed. 2000), p. 801, para. 15-12 [para. 377].

Cohen, David, Thinking about the State, Law Reform and the Crown in Canada (1987), 24 Osgoode Hall L.J. 379-404, p. 398 [para. 460].

Ewart, J. Douglas, Documentary Evidence in Canada (1984), pp. 233 [para. 333]; 235 [para. 332].

Fleming, John G., The Law of Torts (9th Ed. 1998), p. 687 [para. 475].

Goff, Robert, and Jones, Gareth, The Law of Restitution (5th Ed. 1998), p. 778 [para. 371].

Houlden, Lloyd W., and Morawetz, Carl H., Bankruptcy and Insolvency Law of Canada (3rd Ed.) (1989 Looseleaf Supp.), vol. 1, p. 1-4 [para. 477].

Klar, Lewis N., Remedies in Tort (1987), vol. 1, c. 5, pp. 5-11, 5-14 [para. 374]; 5-21, para. 20 [para. 376].

Nash and Cibinic, Federal Procurement Law (3rd Ed. 1980), p. 146 [para. 406].

Phipson, The Law of Evidence (15th Ed. 2000), p. 743 [para. 330].

Sopinka, John, Lederman, Sidney N., and Bryant, Alan W., The Law of Evidence in Canada (2nd Ed. 1999), p. 1028, paras. 18.55 [para. 330]; 18.62 [para. 332].

Waddams, Stephen M., The Law of Contracts (4th Ed. 1999), p. 313 [para. 391].

Wigmore on Evidence (3rd Ed. 1940), vol. 2, p. 162 [para. 350].

Counsel:

R.C. Taylor, L.M. Bolton, J.D. McCamus and L. Nebel, for the plaintiffs;

I.R. Dick, C.L. Mitchell, L.E. Lehmann and V. Anderson, for the government defendants.

This case was heard at Toronto, Ontario, on various dates in 2002 and 2003, before O'Driscoll, J., of the Ontario Superior Court, who released the following decision on August 7, 2003, with corrections issued on October 6, 2003 and December 22, 2003.

Please note: The following judgment has not been edited.