Ruwenzori Enterprises et al. v. Walji et al.,

• Jurisdiction: British Columbia
• Judge: Pitfield, J.
• Neutral Citation: 2004 BCSC 741
• Citation: 2004 BCSC 741,[2004] B.C.T.C. 741 (SC),8 ETR (3d) 209,[2004] BCTC 741
• Date: 11 December 2003
• Court: Supreme Court of British Columbia (Canada)

Ruwenzori Ent. Ltd. v. Walji, [2004] B.C.T.C. 741 (SC)

MLB headnote and full text

Temp. Cite: [2004] B.C.T.C. TBEd. JN.050

Ruwenzori Enterprises Ltd., Cale Holdings Limited and Norsham Inc. (plaintiffs) v. Zulfikar Walji, Yasmin Walji, 1118174 Ontario Limited (doing business as Best Western Roehampton Hotels & Suites), 1392275 Ontario Inc. (doing business as Markham Hilton Gardens), 3465632 Canada Inc. (doing business as Days Inn Montreal Airport), Humble Capital Group LLC (doing business as Humble Hampton Inn), YZ Enterprises Inc. (doing business as Classic Cleaners and doing business as Designamatics) (defendants)

(S001789)

Zulfikar Walji (plaintiff) v. Farhana Charania, personal representative of Noordin Charania, deceased, Nor-Sham Hotels Inc., Nor-Sham Developments Inc., Nor-Sham (Markham) Hotels Inc., and Nor-Sham Management Inc. (defendants)

(S027047; 2004 BCSC 741)

Indexed As: Ruwenzori Enterprises Ltd. et al. v. Walji et al.

British Columbia Supreme Court

Vancouver

Pitfield, J.

June 4, 2004.

Summary:

This headnote contains no summary.

Company Law - Topic 4262

Directors - Duties - General principles - Fiduciary duty - See paragraphs 175 to 188.

Company Law - Topic 4266

Directors - Duties - General principles - Breach of fiduciary duty - What constitutes - See paragraphs 175 to 188.

Company Law - Topic 4603

Officers and agents - Duty to company - Fiduciary duty - See paragraphs 189 to 192.

Conflict of Laws - Topic 9241

Practice - Limitation of actions - General principles - See paragraphs 259 to 287.

Equity - Topic 1006

Equitable relief - General - Accounting of profits - See paragraphs 239 to 249.

Equity - Topic 1007

Equitable relief - General - Tracing - See paragraphs 239 to 249.

Equity - Topic 2061

Equitable defences - Laches - General - See paragraphs 250 to 258.

Equity - Topic 3646

Fiduciary or confidential relationships - Breach of fiduciary relationship - By director or officer of company - See paragraphs 175 to 192.

Equity - Topic 3651

Fiduciary or confidential relationships - Breach of fiduciary relationship - Effect of breach - See paragraphs 203 to 209.

Equity - Topic 3652

Fiduciary or confidential relationships - Breach of fiduciary relationship - Liability of third parties or accessories (incl. doctrines of knowing receipt or assistance) - See paragraphs 193 to 202.

Restitution - Topic 784

Benefit acquired from the plaintiff - Recovery based on quantum meruit - Work performed or goods provided - See paragraphs 330 to 340.

Cases Noticed:

Kieley Estate and Kieley v. Donnelly (1986), 58 Nfld. & P.E.I.R. 107; 174 A.P.R. 107; 24 E.T.R. 1 (Nfld. U.F.C.), refd to. [para. 56].

Smith v. Walkerville Malleable Iron Co., [1896] 23 O.A.R. 95, refd to. [para. 56].

MacDougall v. Johnson, [1946] 4 D.L.R. 412 (B.C.S.C.), refd to. [para. 56].

Kooner v. Kooner (1979), 100 D.L.R.(3d) 76 (B.C.S.C.), refd to. [para. 56].

Wettstein v. Wettstein, [1992] B.C.J. No. 1026 (S.C.), refd to. [para. 56].

C.A. et al. v. Critchley et al. (1998), 113 B.C.A.C. 248; 184 W.A.C. 248; 166 D.L.R.(4th) 475 (C.A.), refd to. [para. 175].

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. 176].

Canadian Aero Service Ltd. v. O'Malley et al., [1974] 4 S.C.R. 592; 40 D.L.R.(3d) 371, refd to. [para. 177].

Citadel General Assurance Co. v. Lloyds Bank of Canada et al. (1997), 219 N.R. 323; 206 A.R. 321; 156 W.A.C. 321; 152 D.L.R.(4th) 411 (S.C.C.), consd. [para. 194].

Air Canada v. M & L Travel Ltd., Martin and Valliant, [1993] 3 S.C.R. 787; 159 N.R. 1; 67 O.A.C. 1; 108 D.L.R.(4th) 592, refd to. [para. 196].

Waxman et al. v. Waxman et al. (2004), 186 O.A.C. 201 (C.A.), consd. [para. 199].

Visagie et al. v. TVX Gold Inc. (2000), 132 O.A.C. 231; 49 O.R.(3d) 198 (C.A.), refd to. [para. 207].

Foskett et al. v. McKeown et al., [2000] 3 All E.R. 97; 257 N.R. 294 (H.L.), consd. [para. 213].

Waxman v. Waxman, [2002] O.T.C. 443 (Sup. Ct.), affd. (2004), 186 O.A.C. 201 (C.A.), refd to. [para. 216].

British Columbia Teachers' Credit Union v. Betterly (1975), 61 D.L.R.(3d) 755 (B.C.S.C.), consd. [para. 216].

Louie v. Lastman (2002), 163 O.A.C. 52; 61 O.R.(3d) 459 (C.A.), refd to. [para. 250].

Roeder et al. v. Morton & Co., [2003] B.C.T.C. Uned. 500; 2003 BCSC 1259, refd to. [para. 251].

Irvine v. Irvine, [1977] 3 W.W.R. 37 (B.C.C.A.), refd to. [para. 258].

S.V. v. R.V. (1996), 933 S.W.2d 1 (Tx.), refd to. [para. 275].

Slusser v. Union Bankers Insurance Co. (2002), 72 S.W.2d 713 (Tx. App.), refd to. [para. 275].

Authors and Works Noticed:

Ellis, M.V., Fiduciary Duties in Canada (1988), generally [para. 219].

Oakley, A.J., Constructive Trusts (3rd Ed. 1997), generally [para. 219].

Counsel:

D. Geoffrey Cowper, Q.C., David A. Crerar and Mark E. Fancourt-Smith, for the plaintiffs;

Paul Gemmink and Jeremy M. Thom, for the defendant, Zulfikar Walji;

Ravi Hira, Q.C., Rahul Shastri and Angela A. Walker, for the defendant, Yasmin Walji and the other defendants.

This action was heard on September 22 to 27, 29 and 30, October 1 to 3, 6 to 10, 14 to 17, 21 to 23, November 17 to 21, 24 to 28, December 11, 2003, and April 5 to 8, 12 to 16 and 19 to 23, 2004, at Vancouver, British Columbia, before Pitfield, J., of the British Columbia Supreme Court, who delivered the following judgment on June 4, 2004.

Please note: The following judgment has not been edited.