Courts of Justice Act

Table of Contents

Section 106


Kaye et al. v. Fogler Rubinoff LLP et al., 2019 ONSC 1289

stay ordered for negligence action against a law firm pending disposition of the related tax appeal

The plaintiff (the “Estate”) suing its former law firm for alleged negligence in proposing a particular method for transferring shares from the Estate to a charitable foundation. CRA, in disallowing a donation credit, assessed the Estate for over $9 million, and the estate appealed that assessment to the Tax Court. However, there had “been undue and avoidable delay in the tax appeal” (para. 27) on the part of the Estate.

In granting the motion of the defendant law firm for a stay of the negligence action pending the disposition of the tax appeal, Josefo, M. stated (at paras. 15, 25):

[R]esorting to a stay will avoid potentially duplicative matters proceeding and potentially different results possibly emerging from two different courts. …

[T]he ultimate decision of the Tax Court on the propriety of the method or structure for transferring shares recommended by the law firm and lawyer to the Estate will, in my view, very much influence if not be determinative of much if not all of this within negligence action.

Locations of other summaries Wordcount
Tax Topics - General Concepts - Negligence, Fiduciary Duty and Fault negligence action stayed pending related TCC appeal 119