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Vancouver Calgary Child Parenting Appeal Lawyers

Our Family Law Financial Disclosure lawyers are pleased to see Ontario courts taking a firm stand on holding non-disclosing parties accountable in family cases. This case tracks recent success MacLean Law lawyers have had for their clients.  Family Law financial disclosure lawyers understand that the ultimate sanction is to strike a parties’ pleadings so they can no longer can participate in the process.

Tenacious Family Law Financial Disclosure Lawyers at MacLean Law 1-877-602-9900.

This approach mirrors a recent successful motion to strike out a wife’s pleadings that our award winning law firm obtained involving a multi-million dollar case where a wife refused to make proper disclosure and obey court orders. Our firm also obtained special costs against the non-disclosing party to indemnify our client for fees he had been forced to spend to find out where the wife’s millions of assets were and what they were worth. In another case we obtained a forensic audit after attacking the husband’s credibility concerning his income.

If you want top rated Family Law Financial Disclosure Lawyers call MacLean Family Law at 1-877-602-9900. We have 7 offices across Western Canada in downtown Vancouver, Calgary, Surrey, Richmond, Kelowna, Fort St John and Winnipeg.

Award Winning Family Law Financial Disclosure Lawyers

Family Law Financial Disclosure lawyers
Lorne MacLean, QC founder award winning Family Law Financial Disclosure lawyers

Our Family Law Financial Disclosure lawyers appreciate the tough new approach to family financial non-disclosure that occurred in a recent Ontario case.

The Ontario family law trial judge reviewed the law encouraging prompt and efficient proceedings in family law cases. The learned judge also expressed frustration that non-disclosure was all to prevalent in family cases with terrible consequences for the innocent victims and their children. The judge opined that more accountability was needed to prevent threats to efficient justice in family cases. Our skilled Family Law Financial Disclosure lawyers fully agree.

Family Law Financial Disclosure Lawyers Find Hidden Assets and Income

If you face a high stakes financial case involving family law support and family property division it just makes sense to hire MacLean Law’s Family Law Financial Disclosure lawyers who know how to force proper disclosure and find hidden or secreted assets and cash income.

In todays blog, founder Lorne N. MacLean,QC of our Family Law Financial Disclosure Lawyers team has extracted the juicy legal extracts that help you understand why non disclosure is the cancer of matrimonial litigation from Manchanda v Thethi, 2016 ONSC 3776 :

[9]               Over and over, again and again, courts have stressed the importance of disclosure in family proceedings. In 2010, Mesbur J. dealt with a party’s failure to make early and timely financial disclosure in Bardouniotis v. Trypis, 2010 ONSC 4466 (CanLII); additional reasons 2010 ONSC 6586 (CanLII) as follows:

As is the case in all family law litigation, financial disclosure is at the heart of it, particularly production of income tax returns and attachments.  Mr. Trypis has been under an obligation to produce for five years.  He finally produced his tax returns for the taxation years 2004 to 2007 at the end of the trial, after the evidence was concluded!  He was able to obtain them with a simple call to his accountant.  This alone suggests to me that Mr. Trypis has, and had no intention of making meaningful disclosure at any point during this protracted lawsuit.

Disclosure, of course, is critical to the court’s task of fact-finding, particularly where, as here, there are significant credibility issues.  In these circumstances of deliberate non-disclosure I draw an adverse inference against Mr. Trypis and accept little of what he says on contentious issues unless corroborated by independent, credible evidence. [Emphasis added.]

[10]           The court cannot determine the value of a party’s property at the date of marriage or at the valuation date if the party does not disclose all of the property that he or she owned at each date.  Without disclosure, there are no facts upon which the court can make the required findings to resolve the financial issues in dispute.  As noted by Kiteley J. above, with imperfect disclosure it is often possible to draw inferences that allow the court to make approximations of financial values.  It may also be possible to make imputations where the law allows.  But the court cannot guess.  I agree with Mesbur J. that disclosure is critical to the court’s fact-finding tasks.

[11]           In recent years, re-statements of this fundamental point have become clearer and sharper.  For example, in Turk v. Turk, 2014 ONSC 4490 (CanLII), D.A. Wilson J. wrote at para. 11:

The jurisprudence makes it abundantly clear that full and complete financial disclosure is necessary in the family law context, particularly when parties have entered into domestic contracts.

[12]           In 2015, in Hao v. Wang, 2015 ONSC 6989 (CanLII), at para. 70, Sutherland J. wrote:

It is trite to say that documentary disclosure is an integral part of family litigation. Without forthright and expedient financial disclosure, family litigation cannot be conducted in a logical, rational manner nor can litigation be settled without comprehensive documentary disclosure. Documentary disclosure which includes financial disclosure is integral and the foundation of family cases for the purpose of either going to trial or settlement. The sooner comprehensive financial disclosure is provided in a logical manner, the sooner litigants in family cases can assess their case and attempt to settle that case.

[13]           In 2015, in Rayzberg v Bakhmatch, 2015 ONSC 6306 (CanLII), at para. 19, Jarvis J. wrote:

Disclosure in family law cases is critical to a fair and expeditious resolution of a case, and is the responsibility of each party. [citations omitted.]

[14]           In 2015, the Court of Appeal made the same point in Roberts v. Roberts, 2015 ONCA 450 (CanLII), at paras 36 and 37:

The most basic obligation in family law is the duty to disclose financial information. This requirement is immediate and ongoing.

Failure to abide by this fundamental principle impedes the progress of the action, causes delay and generally acts to the disadvantage of the opposite party. It also impacts on the administration of justice. Unnecessary judicial time is spent and the final adjudication is stalled.

Financial disclosure is automatic. It should not require court orders – let alone three – to obtain production.

[65]           The consequences of an order striking out pleadings are discussed specifically in Rule 1(8.4) as follows:

(8.4) If an order is made striking out a party’s application, answer, motion to change or response to motion to change in a case, the following consequences apply unless a court orders otherwise:

  1. The party is not entitled to any further notice of steps in the case, except as provided by subrule 25 (13) (service of order).
  2. The party is not entitled to participate in the case in any way.
  3. The court may deal with the case in the party’s absence.
  4. A date may be set for an uncontested trial of the case.

[66]           In Grenier v Grenier, [2012] O.J. No. 6512 (ON SC), at para. 21, aff’d 2012 ONCA 732 (CanLII), Rogers J. discussed the remedy of striking pleadings in family proceedings as follows:

  •    A court being asked to strike pleadings looks to Rules 1(8), 13(6), 13(7), 14(23) and 19(10). The remedy of striking of pleadings has the most drastic impact for a party that is not in compliance with court orders and should only be imposed in the most egregious of circumstances. To determine if said sanction is appropriate in situations of non-disclosure, the court should consider the following issues
  • What was the overall effort to complete disclosure relative to the undisclosed items and what ratio does the completed disclosure bear to the undisclosed items
  •         Are the missing pieces of disclosure relevant to significant issues in the file or are they about issues that were or have become minor? Does the mover need this disclosure to proceed and would a court be hampered in adjudicating without it
  • Was there and is there a realistic possibility of obtaining this disclosure
  •  What is the cost of the disclosure relative to the overall quantum of money at risk
  • Is the disclosure available to the seeker
  • Given the advances in the information in the case, has the request for missing disclosure become over-reaching
  • Were the orders (or order) concerning the disclosure sufficiently clear that the party ordered to provide the information would understand what was being sought
  • Were the time-frames for obtaining the disclosure reasonable
  •  Did the seeker of the disclosure continue to pursue the disclosure and enforce the order(s)
  • Were the disclosure orders (or order) so onerous that a party could not reasonably locate and disclose the volume of material requested
  • Is there a lesser remedy that would suffice? Would it be reasonable to provide that information not disclosed could not be used at trial?
  • Has the seeker of disclosure discharged the onus of the burden of proof in the motion? [Emphasis added.]

[76]           I agree with D.L. Chappell J. who, at para. 12 of Levely v Levely, 2013 ONSC 1026 (CanLII), wrote:

Family Court proceedings are intended to be a means by which aggrieved parties can have their disputes arising after separation adjudicated upon by the court in a just, efficient and timely manner.  Unfortunately, they all too often become a destructive tool which one party wields and manipulates in order to create further financial and emotional hardship for the other party.  The frequency with which Family Law litigation degenerates into an abusive game of delay tactics, stonewalling,  and dodging of judicial authority is a concern which must remain at the forefront of the judge’s mind in considering remedies for a party’s failure to participate as required in court proceedings or to comply with court orders.   Family Law litigants who come to the court for assistance must come with a strong sense of assurance that the process will be an effective means of mending and stabilizing the family fabric, rather than a futile money pit of failed justice.  The court has a critical responsibility and role to play in ensuring that proceedings which are intended to protect families and lead to resolution of pressing and emotionally divisive issues are not hijacked by a party and transformed into a process for further victimizing the other party and the children in their care.  [Emphasis added.]

[77]           Implementing a culture shift to enhance access to justice by promoting efficiency, affordability, and proportionality requires the court to re-draw the line between limiting drastic measures and applying the law robustly.  In my respectful view, a little less judicial diffidence, a little less reluctance to hold accountable those who would deny justice to their former spouses, and a little more protection of abused parties from abusers, might be a better fulfillment of our critical responsibility as so aptly phrased by Justice Chappell.  After 17 years, it is time for the court’s words were taken to mean what they say.

Disposition

[78]           The respondent’s pleadings are struck out.  The applicant may proceed to an uncontested trial.

Family Law Financial Disclosure Lawyers help family law litigants be accountable and help move their family matters forward to a successful resolution.

Calgary family lawyer Lorne N MacLean, QC
Senior Calgary Family lawyer Lorne N. MacLean, QC

Hiring one of MacLean Law’s Family Law Financial Disclosure Lawyers means you have someone who understands strategies to compel disclosure and to sanction inappropriate behaviour promptly.