Successfully defended against application for appeal to SCC in case concerning the distribution of assets from family trusts
January 12, 2023
On January 12, 2023, McCarthy Tétrault successfully defended the Respondents against an application for leave to appeal to the Supreme Court of Canada in a case concerning the distribution of assets from family trusts.
In 1993, four brothers who ran family corporations implemented an estate freeze. Each created a family trust. Voting control and frozen and future value of the family corporations were distributed equally. In 2014, the family companies were re-organized and the trusts wound-up. Only some beneficiaries retained voting control and future value of family businesses. Two family trusts commenced litigation. The trial judge found breach of fiduciary duty, knowingly assisting breach of fiduciary duty and failure to act in good faith. She declared entitlement to disgorgement and granted remedies. The B.C.C.A. granted an appeal. In its judgment, the Supreme Court states that “The application for leave to appeal…is dismissed with costs to Haider Pirani, Mustaq Pirani and Mehboob Pirani.”
McCarthy Tétrault assisted the Respondents with a team led by Michael Feder, K.C. and Jill Yates that included Connor Bildfell (Litigation).