Corporate veil lifted to execute default judgment

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.).

Free newsletter

Our newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please enter your email address below to subscribe.

Recent articles & video

Qase, Vexxit offer new business development websites for lawyers

Ontario personal injury lawyer Darcy Merkur explains impact of COVID-19 on practice

Consent needed for remote or socially-distanced in-person trial, says CLA

Black Business Law Clinic revived to help business owners

Webpage launched to track COVID-19 impact on court, ADR procedures

What COVID-19 class actions will look like

Most Read Articles

New judges include human rights commissioner Renu Mandhane, bencher Gina Papageorgiou

Consent needed for remote or socially-distanced in-person trial, says CLA

What COVID-19 class actions will look like

Lawyers should be wary of assuming office equipment is a tax write-off when working from home