Federal Court

Business Associations

Legal proceedings involving business associations

Practice and procedure in proceedings involving corporations

Corporate veil lifted to execute default judgment

Court issued default judgment against corporate third party carrying on business as “jbloom”, on ex parte motion brought by plaintiff A Corp.. Corporate third party brought motion seeking various types of relief in relation to execution of Writ of Seizure and Sale that was issued by court. Among other things, corporate third party sought to have execution of Writ set aside and nullified, and to have itself declared as sole owner of goods that were seized. Motion dismissed. Corporate third party’s corporate veil was lifted to permit A Corp. to execute Default Judgment against corporate third party. Bringing of this motion by corporate third party, after having been party to deliberate and improper actions taken by its principals, JN and JPN, to evade enforcement of Default Judgment, was outrageous and reprehensible. JN and JPN were at all relevant times the directing minds of both numbered companies. Together with numbered companies, they deliberately and flagrantly attempted to evade A Corp.’s enforcement of Default Judgment by liquidating assets of 9153 and transferring jbloom business to 9279, in an attempt to avoid 9153’s liability for the damages and costs awards set forth in paragraph 5 of Default Judgment.

ASICS Corp. v. 9153-2267 Québec Inc. (2017), 2017 CarswellNat 622, 2017 FC 257, Paul S. Crampton C.J. (F.C.).

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