Englefield v. Wolf,

Englefield v. Wolf, [2005] O.T.C. 970 (SC)

MLB headnote and full text

Temp. Cite: [2005] O.T.C. TBEd. NO.046

Thomas Englefield, on his own behalf and on behalf of all former employees of Dylex Limited, in bankruptcy (plaintiff) v. Hardof Wolf (defendant)

(Court File No. 04-CV-271540CM 2)

Indexed As: Englefield v. Wolf

Court of Ontario

Superior Court of Justice

Cullity, J.

November 18, 2005 and March 29, 2006 and August 2, 2006.

Summary:

This headnote contains no summary.

Company Law - Topic 4186

Directors - Liability of directors - For employees' wages or debts for services performed for corporation - See paragraphs 33 to 51.

Courts - Topic 126

Stare decisis - Authority of judicial decisions - Courts of superior jurisdiction - Decisions binding on provincial courts - See paragraphs 27 to 32.

Master and Servant - Topic 1828

Remuneration - Wages - Payment of - Liability of employer or director for - See paragraphs 33 to 51.

Practice - Topic 3198

Appearance and default proceedings - Proceedings in default of appearance - Default judgment - Requirement of debt or liquidated demand - See paragraphs 11 to 18.

Practice - Topic 3229

Appearance and default proceedings - Proceedings in default of defence - Default judgment - Requirement of debt or liquidated demand - See paragraphs 11 to 18.

Practice - Topic 5608

Judgments and orders - Default judgments - Assessment of damages - See paragraphs 18 to 26.

Cases Noticed:

Lukenda et al. v. Campbell, [2003] O.T.C. Uned. 997 (Sup. Ct.), refd to. [para. 14].

Canadian-Automatic Data Processing Services Ltd. v. CEEI Safety & Security Inc. et al. (2004), 192 O.A.C. 152 (C.A.), refd to. [para. 14].

Holden Day Wilson v. Ashton et al. (1993), 64 O.A.C. 4; 14 O.R.(3d) 306 (Div. Ct.), refd to. [para. 14].

Umlauf v. Umlauf et al. (2001), 142 O.A.C. 328; 197 D.L.R.(4th) 715 (C.A.), refd to. [para. 19].

Halton (Regional Municipality) v. Rezaizadeh et al., [2004] O.T.C. 704 (Sup. Ct.), refd to. [para. 22].

Luciano v. Spadafora, [2004] O.T.C. Uned. 924 (Sup. Ct.), refd to. [para. 25].

Mills-Hughes et al. v. Raynor et al. (1988), 25 O.A.C. 248; 63 O.R.(2d) 343; 47 D.L.R.(4th) 381 (C.A.), refd to. [para. 27].

Vopni v. Groenewald, [1991] O.J. No. 3577 (Gen. Div.), refd to. [para. 27].

Jonah v. Quinte Transport (1986) Ltd., [1994] O.J. No. 1507 (Gen. Div.), refd to. [para. 27].

Friedmann Equity Developments Inc. v. Final Note Ltd. et al. (1998), 112 O.A.C. 253; 41 O.R.(3d) 712 (C.A.), refd to. [para. 33].

R. v. West (J.L.) et al. (2005), 204 O.A.C. 152 (C.A.), refd to. [para. 33].

Tucker et al. v. Cadillac Fairview Corp. (2005), 200 O.A.C. 140 (C.A.), refd to. [para. 33].

Cackett v. Cackett, [1950] P. 253 (P.D.A.), refd to. [para. 33].

Minister of Pensions v. Chennell, [1947] K.B. 250, refd to. [para. 33].

Mesheau v. Campbell et al. (1982), 32 O.R.(2d) 702 (C.A.), refd to. [para. 34].

Barrette v. Succession Crabtree, [1993] 1 S.C.R. 1027; 150 N.R. 272; 53 Q.A.C. 279; 101 D.L.R.(4th) 66, refd to. [para. 35].

Barrette et al. v. Crabtree et al. - see Barrett v. Succession Crabtree.

Proulx et al. v. Sahelian Goldfields Inc. et al. (2001), 55 O.R.(3d) 775 (C.A.), refd to. [para. 36].

Wallace v. United Grain Growers Ltd., [1997] 3 S.C.R. 701; 219 N.R. 161; 123 Man.R.(2d) 1; 159 W.A.C. 1; 152 D.L.R.(4th) 1, refd to. [para. 40].

Rizzo & Rizzo Shoes Ltd. (Bankrupt), Re, [1998] 1 S.C.R. 27; 221 N.R. 241; 106 O.A.C. 1; 154 D.L.R.(4th) 193, refd to. [para. 47].

Taylor v. Dyer Brown (2004), 192 O.A.C. 91; 73 O.R.(3d) 358 (C.A.), refd to. [para. 49].

Schwartz v. Scott (1985), 32 B.L.R. 1 (Que. C.A.), refd to. [para. 50].

Meyers v. Walters Cycle Co. and Walters (1990), 85 Sask.R. 222; 32 C.C.E.L. 206 (C.A.), refd to. [para. 50].

Benner v. Yukon (Director of Employment Standards), [1994] Y.J. No. 172 (S.C.), refd to. [para. 50].

Vorvis v. Insurance Corp. of British Columbia, [1989] 1 S.C.R. 1085; 94 N.R. 321, refd to. [para. 52].

Whiten v. Pilot Insurance Co. et al., [2002] 1 S.C.R. 595; 283 N.R. 1; 156 O.A.C. 201; 209 D.L.R.(4th) 257, refd to. [para. 52].

Brown v. Shearer et al., [1995] 6 W.W.R. 68; 102 Man.R.(2d) 76; 93 W.A.C. 76 (C.A.), refd to. [para. 54].

Bell v. British Columbia (Director of Employment Standards), [1996] B.C.J. No. 1372 (C.A.), refd to. [para. 63].

Gardiner Miller Arnold LLP v. Kymbo International Inc. et al., [2006] O.T.C. 444 (Sup. Ct.), refd to. [para. 81].

671122 Ontario Ltd. v. Sagaz Industries Canada Inc. et al. (1998), 80 O.T.C. 212 (Gen. Div.), refd to. [para. 82].

Mele v. Royal Bank of Canada, [1994] O.J. No. 1425 (Gen. Div.), refd to. [para. 83].

Castlerigg Investments Inc. v. Lam, [1991] O.J. No. 204 (Gen. Div.), refd to. [para. 84].

Statutes Noticed:

Canada Business Corporations Act, R.S.C. 1985, c. C-44, sect. 119(1), sect. 119(2) [para. 7].

Rules of Civil Procedure (Ont.), rule 19.04 [para. 12]; rule 19.05, rule 19.06 [para. 11].

Authors and Works Noticed:

Allen, Carleton Kemp, Law in the Making (6th Ed. 1958), p. 306 [para. 29].

Cross, Rupert, Precedent in English Law (1st Ed. 1961), pp. 122 to 125 [para. 33].

Goldstein, Yoine, Bankruptcy As It Affects Third Parties: Some Aspects, in Meredith Memorial Lectures 1985, Bankruptcy -- Present Problems and Future Perspectives (1986), generally [para. 64].

Lambert, Douglas, Ratio Decidendi and Obiter Dicta (1993), 51 Advocate (B.C.) 689, p. 689 ff. [para. 33].

Counsel:

Andrew J. Hatnay, for the plaintiff;

The defendant did not appear by counsel or in person.

This action was heard on October 3, 2005, before Cullity, J., of the Ontario Superior Court, who released the following decision on November 18, 2005. Subsequently submissions were heard on March 8, 2006, with supplementary reasons released on March 29, 2006. Further submissions were heard on July 28, 2006, with further supplementary reasons released on August 2, 2006.

Please note: The following judgment has not been edited.