Application suffered from ambiguity and lack of clarity

Dispute arose between parties with respect to transfer of trust assets. According to agreement, assets held by respondents were to be transferred to applicants. Respondents made certain loans in United States. Respondents took position that assets relating to those loans were extinguished by judgment made in Colorado court against respondents and that those assets were no longer capable of being transferred to applicants. Applicants commenced application for determination of parties’ obligations under agreement. Applicants contended that their position could be made out on admissions made in Colorado proceedings. Respondents brought motion for order converting application into action. Motion granted. Application suffered from ambiguity and lack of clarity. Applicants were seeking more than declaration and were also making serious allegations of misconduct. Some of relief sought did not fall readily into provisions of Rule 14 of Ontario Rules of Civil Procedure. Case would benefit greatly from proper pleadings and discovery. Significant sum of money was at stake and serious allegations were raised by applicants with respect to honesty and good faith of respondents. There were likely to be material facts in dispute on central issues. Full evidentiary record of action was required.

Seabrook v. Pantrust (2018), 2018 CarswellOnt 15452, 2018 ONSC 5471, S. Nakatsuru J. (Ont. S.C.J.).