Luton v. Luton, (1998) 52 O.T.C. 241 (GD)

• Judge: Kennedy, J.
• Court: Ontario Court of Justice General Division (Canada)
• Case Date: January 13, 1998
• Jurisdiction: Ontario
• Citations: (1998), 52 O.T.C. 241 (GD)

Luton v. Luton (1998), 52 O.T.C. 241 (GD)

MLB headnote and full text

Temp. Cite: [1998] O.T.C. TBEd. FE.062

Karen Jennifer Luton (plaintiff) v. Robert George Luton (defendant)

(Court File No. 24402/92)

Indexed As: Luton v. Luton

Ontario Court of Justice

General Division

London

Kennedy, J.

January 13, 1998.

Summary:

A husband and wife entered into a separation agreement which settled all matters between them. The agreement was not incorporated into the divorce judgment. Under the agreement, the marital home, which had been registered in the wife's name, was transferred to the husband. The wife relied on the husband's valuation of the home at $360,000. The resolution of property matters resulted in the wife receiving a cash settlement as equalization. The husband represented that he had no intention of selling the home. Three months later he sold the property for $575,000. The wife sued the husband, claiming an amount equal to the difference in the amount which she should have received based on the sale price, plus interest. The wife also claimed support over and above that required by the separation agreement, asserting that the husband's represented that he would pay her half of the net proceeds from the sale of certain commercial property.

The Ontario Court (General Division) held that when the husband signed the settlement agreement he knew that the marital home was worth significantly more than what he had represented to the wife. The court held that his non-disclosure constituted fraud and deceit and awarded the wife judgment accordingly. The court held that the husband's promises to pay the wife extra money did not constitute an enforceable contract. The promises were gratuitous offers which formed a moral commitment. That commitment could be and was withdrawn at the husband's discretion.

Family Law - Topic 660

Husband and wife - Marital property - Separation agreement - Effect of - See paragraphs 144 to 154.

Family Law - Topic 888

Husband and wife - Marital property - Considerations in making distribution orders - Valuation - See paragraphs 144 to 154.

Family Law - Topic 890.2

Husband and wife - Marital property - Considerations in making distribution orders - Settlements - See paragraphs 144 to 154.

Family Law - Topic 2386

Maintenance of wives and children - Variation of - Agreement to vary - Enforcement of - See paragraphs 155 to 212.

Family Law - Topic 3371

Separation agreements, domestic contracts and marriage contracts - Variation - General - See paragraphs 155 to 212.

Family Law - Topic 3382

Separation agreements, domestic contracts and marriage contracts - Grounds for setting aside - Material nondisclosure - See paragraphs 144 to 154.

Family Law - Topic 3390

Separation agreements, domestic contracts and marriage contracts - Grounds for setting aside - Fraud - See paragraphs 144 to 154.

Counsel:

N. Aitken, for the plaintiff;

T. Hainsworth, for the defendant.

This action was heard at London, Ontario, on May 5, 6, 7, 12 and 13, 1997, before Kennedy, J., of the Ontario Court (General Division), who released the following reasons and supplementary reasons for judgment on January 13, 1998 and January 20, 1998, respectively.