Famous Players Development Corp. et al. v. Capitol Life Insurance Co. et al., (1997) 32 O.T.C. 156 (GD)

• Judge: Then, J.
• Court: Ontario Court of Justice General Division (Canada)
• Case Date: March 26, 1997
• Jurisdiction: Ontario
• Citations: (1997), 32 O.T.C. 156 (GD)

Famous Players Dev. v. Capitol Life (1997), 32 O.T.C. 156 (GD)

MLB headnote and full text

Temp. Cite: [1997] O.T.C. TBEd. AP.028

Famous Players Development Corporation Limited, 617531 Ontario Limited and Bedford House International Limited and The Capitol Life Insurance Company, Parkview Properties Limited and Glen Holden, Jr.

(No. 94-CQ-59877)

Indexed As: Famous Players Development Corp. et al. v. Capitol Life Insurance Co. et al.

Ontario Court of Justice

General Division

Then, J.

March 26, 1997.

Summary:

Famous Players Development Corp. defaulted on a mortgage to Capitol Life Insurance Co. Prior to Capitol commencing an action for default under the mortgage, Famous commenced an action against Capitol for damages and injunctive relief. Famous submitted, inter alia, that the law firm acting for Capitol was in a conflict of interest position which vitiated Famous' obligation to Capitol. Famous applied for an interlocutory injunction to stop Capitol from selling or dealing with the property pending the trial.

The Ontario Court (General Division), in a decision reported 17 O.T.C. 362, declined to grant injunctive relief. Famous submitted that there were conflicting decisions on the issue and applied for leave to appeal.

The Ontario Court (General Division) granted leave to appeal.

Barristers and Solicitors - Topic 1601.2

Relationship with client - Conflict of interest - Waiver - See paragraphs 1 to 14.

Barristers and Solicitors - Topic 1605

Relationship with client - Conflict of interest - Loan transactions - See paragraphs 1 to 14.

Injunctions - Topic 1610

Interlocutory or interim injunctions - General principles - Circumstances when injunction will not be granted - See paragraphs 1 to 14.

Injunctions - Topic 1936

Interlocutory or interim injunctions - Practice - Appeals - Leave to appeal - See paragraphs 1 to 14.

Cases Noticed:

Booth et al. v. Huxter (1994), 69 O.A.C. 1; 16 O.R.(3d) 528 (Div. Ct.), folld. [para. 4].

MacDonald Estate v. Martin and Rossmere Holdings (1970) Ltd., [1990] 3 S.C.R. 1235; 121 N.R. 1; 70 Man.R.(2d) 241; 77 D.L.R.(4th) 249, consd. [para. 5].

Gray, Administrator of MacDonald Estate - see MacDonald Estate v. Martin and Rossmere Holdings (1970) Ltd.

Martin v. Gray - see MacDonald Estate v. Martin and Rossmere Holdings (1970) Ltd.

Shoppers Trust Co. v. Dynamic Homes (1992), 10 O.R(3d) 361 (Gen. Div.), refd to. [para. 16].

Statutes Noticed:

Rules of Civil Procedure (Ont.), rule 62.02(4) [para. 3].

Counsel:

Counsel not disclosed.

This case was heard before Then, J., of the Ontario Court (General Division), who delivered the following judgment on March 26, 1997.