He also made unsubstantiated allegations which amounted to an abuse of the litigation process: court
The Ontario Superior Court of Justice appointed a new estate trustee after the original trustee failed to act and made unsubstantiated allegations in an estate dispute.
In Drennan v. Drennan, 2024 ONSC 3905, the applicant is the daughter of the deceased and is entitled to 50 percent of the residuary estate under her father's will. Her brother received 25 percent, and their niece and nephew shared 25 percent. However, the respondents argued that the estate should be divided equally into three parts.
The applicant sought to remove her brother as an estate trustee or, alternatively, to appoint an Estate Trustee During Litigation (ETDL). The court granted the latter, appointing a neutral administrator to manage the estate's assets during litigation. Despite being advised to seek legal counsel and follow procedural steps, the respondents did not deliver the required materials or file a notice of appearance.
The court noted that the brother's continued inaction, including failing to approve the November 2023 order and not delivering a notice of appearance, led to further complications. His neglect resulted in the mortgage on the deceased's house falling into arrears, prompting the mortgagee to enforce its rights. Consequently, the court appointed a replacement estate trustee.
During a recent case conference, the court finalized the order appointing the ETDL and addressed the issue of costs. The applicant incurred nearly $65,000 in costs due to the respondents' failure to act, which necessitated multiple court appearances. The court noted that the respondents made unsubstantiated allegations against the applicant, accusing her of theft and undue influence without providing sworn evidence.
The Superior Court emphasized that the respondents' actions amounted to an abuse of the litigation process, warranting substantial indemnity costs. The respondents' failure to comply with procedural requirements and their attempts to delay the proceedings justified the imposition of enhanced costs. The court determined that the respondents should be jointly and severally liable for these costs.
The court awarded $60,000 in costs to the applicant, which will be deducted from the respondents' share of the estate if any remains after the mortgagee's enforcement actions and associated costs. Additionally, the court allowed the applicant to recover the interest on her litigation loans as a disbursement, recognizing that these loans were necessitated by the brother's failure to administer the estate properly.
