Needless Litigation
Costly: MBCA
In Elefante
v Elefante, 2017 MBCA 17, the court dismissed the husband’s bid to
reduce the amount he was ordered to pay under a support variation order
by almost $19,000, finding no palpable errors in the motion judge’s
mathematical calculations on the variation. In a final comment
the court noted that “the costs of pursuing the dispute were
“completely disproportionate to the amount at issue” and urged counsel
to “carefully consider costs before pursuing needless litigation.”
(para. 5)
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Oppressive Conduct by a
Controlling Shareholder in a Family Owned Corporation: MBQB
In Sonley v. Koolridge Holsteins Inc. et al.,
2017 MBQB 20, the court considers whether it would be just and
equitable to grant an oppression remedy in the context of a marriage
breakdown and accounting involving a family owned corporation and the
sale of a significant corporate asset by the controlling shareholder
(the husband) to the detriment of a minority shareholder (the wife).
The husband argued that selling the dairy farm corporation’s milk quota
was the only way he could pay the $250,000 equalization advance to the
wife, and that the wife ought to have known this. The court disagreed,
finding that his unilateral action in selling a significant
income-generating asset caused a devaluation in the corporate shares
inconsistent with the reasonable expectations of its shareholders,
including the wife. The husband was ordered to purchase the wife’s
shares at fair value to be determined either by agreement or at a further
hearing (at which loss and damages for the oppressive conduct would
also be determined).
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Intervening Before
Permanent Harm is Done: MBQB
The court was compelled to
intervene to address the mother’s escalating attempts to alienate the
children from their father in Wenzel
v Wenzel, 2017 MBQB 14, a custody dispute involving a number of complicated issues such as when a parent’s love
crosses the boundary into obsession. The court found that the shared
custody regime was no longer in the children’s best interest given the
mother’s harmful behaviour and the parties’ inability to co-parent. The
father, despite his past inappropriate behaviour, was granted sole
custody of the children with final decision-making authority in all
aspects of their lives.
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No Turning the Clock
Back – Limiting Variation of Review Orders: MBQB
Variations (like appeals)
of interim orders use up limited family resources and delay final
resolution, and they should be granted sparingly, according to the
court in Wissman
v. Wissman, 2017 MBQB 13. The father was unsuccessful in “turning
back the clock” to have primary care reinstated to him pending trial.
He argued that because the interim order allowing for shared custody
over the summer was reviewable there was no onus on him to demonstrate
a material change of circumstances for it to be varied. The court
disagreed and was not persuaded that the evidence was sufficient to
support a variation of the interim order from shared care. Counsel were
ordered to schedule trial dates forthwith.
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Mental Health Diagnosis
Not a Shield Against Costs: MBQB
“A party’s mental health
does not create special rules or privileges regarding costs,” according
to the court in Ulloa
v. Ulloa, 2017 MBQB 9. The mother, who was diagnosed with a
delusional disorder, argued that costs should not be used to punish a
party with a mental health illness for acting in the best interests of
the children (she had made unproven allegations of child sexual abuse
against the father, who argued that she should be held accountable for
the corresponding costs notwithstanding her mental health issues). The
court found at para. 15 that the fact that a party has a mental illness
diagnosis does not shield that party from costs, and that the
fundamental principles in assessing costs continue to govern, including
evaluating the cost consequences of conduct caused by a mental health
issue. In this case, where neither party was successful in obtaining a
primary care order (shared custody was ordered), but the mother had
some success on her spousal support and retroactive child support
claims, she was awarded approximately one-third of the tariff costs
claimed.
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No Legislative Gap
Justifying Judicial Oversight of Agency: MBQB
In the context of granting
a permanent order in favour of the agency in Anishinaabe
C.F.S. v. D.A. et al, 2017 MBQB 7, the court considered whether it
had the statutory authority under The
Child and Family Services Act to impose certain conditions on
the agency as part of a permanent order (such as compelling it to
report back to the court on a regular basis to provide a status report
on the child, even past her 18th birthday). The court found that it did
not have the statutory authority to impose conditions on an agency save
for those conditions specifically contemplated in the Act, which is
itself a complete legislative and regulatory scheme. In addition, while
a court could exercise its parens
patriae jurisdiction to protect a child into adulthood in the
event of a legislative gap, in this case there was no gap, since other
applicable legislation (including The
Vulnerable Persons Act) is in place to ensure that the rights
and interests of children are protected during the transition to
adulthood.
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Legislative Update
Federal
Bill
S-3, An Act to amend the Indian
Act (elimination of sex-based inequities in registration), was
introduced October 25, 2016 and is currently before the Standing Senate
Committee on Aboriginal Peoples. It amends the Indian Act to address historic
inequities in how men and women acquire and transmit Indian status by
providing new entitlements to registration in the Indian Register in
response to the decision in Descheneaux
c. Canada (Procureur général). For further information see the
government news
release or the CBA Aboriginal Law section submission Bill
S -3 – Indian Act amendments (elimination of sex-based inequities
in registration).
Provincial
Bill
9, The Advocate for Children and
Youth Act, was introduced and received first reading on March 2,
2017. The proposed legislation expands the mandate of the Office of the
Children’s Advocate to review and investigate deaths of children in
care and increases its advocacy and public reporting activities. For
further details see the explanatory
note and government news
release.
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Practice Directions:
MBQB
As detailed in two Court of
Queen’s Bench practice directions from February 10, 2017 (Child
Protection Proceedings and Rota
and Scheduling Changes), a new child protection model that
prioritizes child protection proceedings and addresses unacceptable
delay will be implemented effective March 6, 2017. Materials from a
recent cpd program provide more detail on the new model and are
available for purchase from the Education and Competence Department of
the Law Society.
Electronic
Filing for Judicial Reviews – judicial review applications to the
Court of Queen’s Bench must be filed electronically effective January
23, 2017, according to this practice direction from the court. Paper or
manual applications are no longer accepted. The process and
requirements for e-filing are explained in the E-Filing
Technical Directions Bulletin.
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Notice re Service of
Support Variation Documents
The Family Law Section of the Legal Services Branch,
Manitoba Justice has issued a notice concerning the procedure and new
address/fax number for serving support variation documents on the
Director of Assistance pursuant to QB Rule
70.06(5)(b).
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Recommended Reading
Annual Joint Family Law Program
Continuing Professional Development: LSM
Electronic Legal Research for Luddites!
- work in small groups with knowledgeable research assistants assigned
to guide you through the electronic research process at this hands-on
afternoon session at the Law Society classroom on March 23, 2017.
Program materials and light refreshments are included in the registration fee.
Common Practice Issues: How the Code Can Help –
Leah Kosokowsky, Director of Regulation at the Law Society of Manitoba,
will moderate this fast paced webinar designed to demonstrate how the Code of Professional Conduct
can be a practical problem solving resource in a variety of situations
commonly faced by lawyers, such as withdrawal of retainer, obligations
when changing firms, lawyer duties, and client capacity. The webinar
will be shown from noon to 1:00 pm on April 6, 2017. Discounts up to
50% are offered to group registrants.
Sound Cybersecurity Practices For Your Law Firm
– this very practical lunch program will further your awareness of
cybersecurity risks, and provide you with valuable information about
the technologies and cybersecurity practices you can adopt to reduce
these risks. It takes place April 12, 2017 in the Law Society
classroom. Teleconference registrants receive a group discount.
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Collaborative Practice and Conflict Resolution Training: CPM
ISSN 1916-3916
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