Thursday, May 12, 2011

Ontario's Civil Remedies survives another challenge and avoids another.

I was counsel in Ontario (Attorney General) v. 8477 Darlington Crescent, 2011 ONCA 363 decided 2011-05-10, by Doherty J.A. of the Court of Appeal for Ontario.  Watt and Epstein JJ.A. agreed with his reasons.

Consistent with the decision in Chatterjee v. Ontario (Attorney General), 2009 SCC 19, the court upheld a challenge to the provisions of the Ontario Civil Remedies Act, 2001, but allowed a narrow discretion for relief from forfeiture.  Interestingly, the court agreed with the Attorney General's assertion that mortgage payments derived from illegal activities tainted the entire property.  Therefore, the properties were proceeds.  That was sufficient to uphold the decisions below, without dealing with the challenge to Part III of the Act regarding instruments.