Kovacs v. TD Financial Group et al., 2010 ONSC 6111

JudgeMolloy, J.
CourtSuperior Court of Justice of Ontario (Canada)
Case DateSeptember 30, 2010
JurisdictionOntario
Citations2010 ONSC 6111;(2010), 278 O.A.C. 14 (DC)

Kovacs v. TD Financial (2010), 278 O.A.C. 14 (DC)

MLB headnote and full text

Temp. Cite: [2010] O.A.C. TBEd. NO.012

Imre Kovacs (plaintiff/responding party) v. TD Financial Group, TD Canada Trust, TD Waterhouse and Csaba Nagy (defendants/moving parties)

(447/10; 2010 ONSC 6111)

Indexed As: Kovacs v. TD Financial Group et al.

Court of Ontario

Superior Court of Justice

Divisional Court

Molloy, J.

November 5, 2010.

Summary:

The plaintiff sued a bank group (the bank) for having, at the request of her ex-boyfriend, and in spite of a Master's order requiring payment into court, wrongfully transferred her share of jointly-owned funds to an unreachable offshore bank account. The plaintiff sought a declaration that the bank was in contempt of the Master's order, and damages of $3 million for negligence, breach of fiduciary duty and breach of trust, as well as punitive damages. The bank moved to strike the plaintiff's statement of claim for failure to disclose a cause of action.

The Ontario Superior Court, in a decision reported [2010] O.T.C. Uned. 3469, dismissed the motion. The bank applied for leave to appeal.

The Ontario Divisional Court, per Molloy, J., allowed the application only in respect of the contempt claim.

Practice - Topic 5650

Judgments and orders - Declaratory judgments - General - [See first Practice - Topic 8875 ].

Practice - Topic 8875

Appeals - Leave to appeal - From allowance or dismissal of interlocutory application - In refusing to strike a statement of claim that sought a declaration of contempt as well as damages for a civil wrong, the motions judge ruled that the plaintiff was not advancing a civil cause of action for contempt because "no remedy is sought" in that the plaintiff sought "merely a declaration that contempt existed" - The Ontario Divisional Court, per Molloy, J., granted leave - There was reason to doubt the correctness of the motions judge's ruling that no remedy was sought for contempt - The courts had consistently held that a declaration was a remedy - In addition, there was doubt as to whether contempt, a quasi-criminal proceeding, could be sought along with civil damages since the defendant could lose procedural safeguards such as the right to be protected against self-incrimination - Finally, the matter raised "important issues with a broad impact beyond the parties involved here" - See paragraphs 18 to 28.

Practice - Topic 8875

Appeals - Leave to appeal - From allowance or dismissal of interlocutory application - The plaintiff sued a bank group (the bank) for having, at the request of her ex-boyfriend, and being aware of her interest, wrongfully transferred her share of jointly-owned funds to an unreachable offshore bank account - The plaintiff sought damages for negligence, breach of trust and breach of fiduciary duty - A motions judge declined to strike the statement of claim for failure to disclose a cause of action - The motion judge held that the foreseeability test for negligence had been met - As for the breach of trust and breach of fiduciary duty claims, the motions judge held that there was some possibility of success - The Ontario Divisional Court, per Molloy, J., denied leave to appeal where there was no reason to doubt the correctness of the motions judge's ruling - See paragraphs 29 to 41.

Practice - Topic 8875

Appeals - Leave to appeal - From allowance or dismissal of interlocutory application - The plaintiff sued a bank group (the bank) for having, at the request of her ex-boyfriend, and in spite of a Master's order requiring payment into court, wrongfully transferred her share of jointly-owned funds to an unreachable offshore bank account - A motions judge declined to strike the statement of claim, ruling that the Master had jurisdiction to make the order that he did - The Ontario Divisional Court, per Molloy, J., denied leave to appeal - Regardless of whether the Master's order was a nullity (which was far from clear) and regardless of whether the rule against collateral attack on court orders applied, the plaintiff advanced an arguable case that as long as the order was in existence, the defendants were required by law to obey it - See paragraphs 42 to 44.

Cases Noticed:

Solosky v. Canada, [1980] 1 S.C.R. 821; 30 N.R. 380, refd to. [para. 20, footnote 1].

Kopaniak v. MacLellan (2002), 159 O.A.C. 37; 212 D.L.R.(4th) 309 (C.A.), dist. [para. 22, footnote 2].

Forrest v. Lacroix Estate (2000), 133 O.A.C. 25; 48 O.R.(3d) 619 (C.A.), dist. [para. 23, footnote 3].

Bell ExpressVu Limited Partnership v. Torroni et al. (2009), 246 O.A.C. 212; 94 O.R.(3d) 614 (C.A.), refd to. [para. 24, footnote 4].

SNC-Lavalin Profac Inc. v. Sankar et al., [2009] O.A.C. Uned. 655; 94 O.R.(3d) 236 (C.A.), refd to. [para. 24, footnote 4].

Pro Swing Inc. v. Elta Golf Inc., [2006] 2 S.C.R. 612; 354 N.R. 201; 218 O.A.C. 339, refd to. [para. 24, footnote 5].

Anns v. Merton London Borough Council, [1978] A.C. 728 (H.L.), refd to. [para. 29, footnote 8].

Design Services Ltd. et al. v. Canada, [2008] 1 S.C.R. 737; 374 N.R. 77, refd to. [para. 31, footnote 9].

United Kingdom (Her Majesty's Commissioners of Customs and Excise) v. Barclays Bank plc, [2006] 4 All E.R. 256; 360 N.R. 218 (H.L.), refd to. [para. 35, footnote 10].

Counsel:

Mahmud Jamal and Adam Hirsh, for the moving parties (defendants other than Nagy);

Charles F. Scott and Daniel Naymark, for the responding party (plaintiff).

This application for leave to appeal was heard on September 30, 2010, at Toronto, Ontario, by Molloy, J., of the Ontario Divisional Court, who delivered the following endorsement on November 5, 2010.

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5 practice notes
  • Asset Preservation Orders - Mareva Injunctions
    • Canada
    • Irwin Books The Law of Equitable Remedies. Second Edition
    • 18 d2 Junho d2 2013
    ...to Romania. The claimant commenced proceedings against the bank arguing negli-106 [2006] UKHL 28. 107 Kovacs v. TD Financial Group , 2010 ONSC 6111; and Laiken v. Carey , 2011 ONSC 5892. 108 Glenwood Label & Box Mfg Ltd. v. Brunswick Label Systems Inc. , 2011 MBQB 33. 109 Above note 107. Th......
  • Table of Cases
    • Canada
    • Irwin Books The Law of Equitable Remedies. Second Edition
    • 18 d2 Junho d2 2013
    ...174 A.R. 109, 128 D.L.R. (4th) 440, [1996] 1 W.W.R. 292 (C.A.) ...................................... 243 Kovacs v. TD Financial Group, 2010 ONSC 6111 .............................................. 129 Kraus Group Inc. v. McCarroll, [1995] 9 W.W.R. 633, 105 Man. R. (2d) 270, 63 C.P.R. (3d) ......
  • Glenwood Label & Box Ltd. v. Brunswick Label Systems Inc. et al., (2011) 261 Man.R.(2d) 177 (QB)
    • Canada
    • Manitoba Court of Queen's Bench of Manitoba (Canada)
    • 17 d4 Fevereiro d4 2011
    ...7]. Frame v. Smith and Smith, [1987] 2 S.C.R. 99; 78 N.R. 40; 23 O.A.C. 84, refd to. [para. 8]. Kovacs v. TD Financial Group et al. (2010), 278 O.A.C. 14; 2010 ONSC 6111 (Div. Ct.), refd to. [para. Customs & Excise Commissioners v. Barclays Bank plc, [2007] 1 A.C. 181 (H.L.), refd to. [......
  • Ubochi v. Lebeanya, [2011] O.T.C. Uned. 6318 (SC)
    • Canada
    • Ontario Superior Court of Justice of Ontario (Canada)
    • 26 d3 Outubro d3 2011
    ...materials be filed "within" 20 days, and cites Bambi v. Walsh , 2006 CanLII 9959 (On. SC), Kovacs v TD Financial Group et. al . 2010 ONSC 6111 (CanLII) and Vandergeissen v. Mississauga Hospital et al ., 2009 CanLII 20347 (On. S.C.). I do not find these cases to be of assistance to......
  • Request a trial to view additional results
3 cases
  • Glenwood Label & Box Ltd. v. Brunswick Label Systems Inc. et al., (2011) 261 Man.R.(2d) 177 (QB)
    • Canada
    • Manitoba Court of Queen's Bench of Manitoba (Canada)
    • 17 d4 Fevereiro d4 2011
    ...7]. Frame v. Smith and Smith, [1987] 2 S.C.R. 99; 78 N.R. 40; 23 O.A.C. 84, refd to. [para. 8]. Kovacs v. TD Financial Group et al. (2010), 278 O.A.C. 14; 2010 ONSC 6111 (Div. Ct.), refd to. [para. Customs & Excise Commissioners v. Barclays Bank plc, [2007] 1 A.C. 181 (H.L.), refd to. [......
  • Ubochi v. Lebeanya, [2011] O.T.C. Uned. 6318 (SC)
    • Canada
    • Ontario Superior Court of Justice of Ontario (Canada)
    • 26 d3 Outubro d3 2011
    ...materials be filed "within" 20 days, and cites Bambi v. Walsh , 2006 CanLII 9959 (On. SC), Kovacs v TD Financial Group et. al . 2010 ONSC 6111 (CanLII) and Vandergeissen v. Mississauga Hospital et al ., 2009 CanLII 20347 (On. S.C.). I do not find these cases to be of assistance to......
  • Sabourin and Sun Group of Companies v. Laiken, [2011] O.T.C. Uned. 5892 (SC)
    • Canada
    • Superior Court of Justice of Ontario (Canada)
    • 12 d3 Outubro d3 2011
    ...para. 25 15. Design Services Ltd. v. Canada [2008] 1 S.C.R. 737, at paras. 46 to 47 16. Ibid. , at paras. 48 to 50 17. [2006] UKHL 28 18. 2010 ONSC 6111 (CanLII), (Div.Ct.), at para. 35 19. Commissioner v. Barclays Bank, supra , at para. 23 20. Kovacs v. TD Financial Group, supra , at para.......
4 books & journal articles
  • Table of Cases
    • Canada
    • Irwin Books Archive The Law of Equitable Remedies. Second Edition
    • 18 d2 Junho d2 2013
    ...174 A.R. 109, 128 D.L.R. (4th) 440, [1996] 1 W.W.R. 292 (C.A.) ...................................... 243 Kovacs v. TD Financial Group, 2010 ONSC 6111 .............................................. 129 Kraus Group Inc. v. McCarroll, [1995] 9 W.W.R. 633, 105 Man. R. (2d) 270, 63 C.P.R. (3d) ......
  • Asset Preservation Orders - Mareva Injunctions
    • Canada
    • Irwin Books Archive The Law of Equitable Remedies. Second Edition
    • 18 d2 Junho d2 2013
    ...to Romania. The claimant commenced proceedings against the bank arguing negli-106 [2006] UKHL 28. 107 Kovacs v. TD Financial Group , 2010 ONSC 6111; and Laiken v. Carey , 2011 ONSC 5892. 108 Glenwood Label & Box Mfg Ltd. v. Brunswick Label Systems Inc. , 2011 MBQB 33. 109 Above note 107. Th......
  • Asset Preservation Orders - Mareva Injunctions
    • Canada
    • Irwin Books The Law of Equitable Remedies - Third edition
    • 18 d6 Novembro d6 2023
    ...of their responsibilities under the Mareva injunction. Lord Denning MR made the following points: 170 166 Kovacs v TD Financial Group , 2010 ONSC 6111 [ Kovacs ]; Laiken v Carey , 2011 ONSC 5892. 167 Glenwood Label & Box Mfg Ltd v Brunswick Label Systems Inc , 2011 MBQB 33. 168 Kovacs , abo......
  • Table of cases
    • Canada
    • Irwin Books The Law of Equitable Remedies - Third edition
    • 18 d6 Novembro d6 2023
    ...353 Kouridakis v Canadian Imperial Bank of Commerce, 2019 FC 1226 ............... 575 Kovacs v TD Financial Group, 2010 ONSC 6111 ............................................... 202 Kraus Group Inc v McCarroll, [1995] 9 WWR 633, 105 Man R (2d) 270, 63 CPR (3d) 368 (QB) ...........................

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