Bruno Appliance v. Hryniak (2014), 314 O.A.C. 49 (SCC)
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[French language version follows English language version]
[La version française vient à la suite de la version anglaise]
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Temp. Cite: [2014] O.A.C. TBEd. FE.008
Bruno Appliance and Furniture Inc. (appellant) v. Robert Hryniak (respondent) and Attorney General of Ontario, Ontario Trial Lawyers Association, Advocates’ Society and Canadian Bar Association (interveners)
(34645; 2014 SCC 8; 2014 CSC 8)
Indexed As: Bruno Appliance and Furniture Inc. v. Hryniak
Supreme Court of Canada
McLachlin, C.J.C., LeBel, Abella, Rothstein, Cromwell, Karakatsanis and Wagner, JJ.
January 23, 2014.
Summary:
Bruno Appliance and Furniture Inc. sued Hryniak et al. (defendants) for civil fraud after losing investment moneys. Bruno moved for summary judgment.
The Ontario Superior Court (motions judge) in a decision with neutral citation 2010 ONSC 5490, utilizing the expanded powers under the amended Civil Procedure Rule 20.04(2.1), granted summary judgment in favour of Bruno. Hryniak appealed.
The Ontario Court of Appeal, in a decision reported 286 O.A.C. 3, allowed the appeal, set aside the summary judgment and ordered that the action proceed to trial. Bruno appealed.
The Supreme Court of Canada, in light of the principles articulated in the companion case of Hryniak v. Mauldin, dismissed the appeal.
Editors Note: This case and the companion case Hryniak v. Mauldin (2013), 453 N.R. 51; 314 O.A.C. 1; 2014 SCC 7, were both previously reported under the Indexed As Name: “Combined Air Mechanical Services Inc. et al. v. Flesch et al.” at the appeal and motion level. Since Combined Air and Flesch were not involved in this appeal to the Supreme Court of Canada or the companion appeal, the Indexed As Name of both cases have been modified accordingly.
Fraud and Misrepresentation – Topic 7
Fraudulent misrepresentation (deceit) – General principles – What constitutes fraud – The Supreme Court of Canada summarized the four elements of the tort of civil fraud: “(1) a false representation made by the defendant; (2) some level of knowledge of the falsehood of the representation on the part of the defendant (whether through knowledge or recklessness); (3) the false representation caused the plaintiff to act; and (4) the plaintiff’s actions resulted in a loss” – See paragraph 21.
Practice – Topic 5702
Judgments and orders – Summary judgments – Jurisdiction or when available or when appropriate – Bruno Appliance and Furniture Inc. sued Hryniak et al. (defendants) for civil fraud after losing investment moneys – Bruno moved for summary judgment – The motions judge, utilizing the expanded powers under the amended Civil Procedure Rule 20.04(2.1), granted summary judgment – Hryniak appealed – The Ontario Court of Appeal allowed the appeal, set aside the summary judgment and ordered that the action proceed to trial – Bruno appealed – The Supreme Court of Canada dismissed the appeal – In this case, there was a genuine issue requiring a trial (i.e., whether Hryniak made a misrepresentation which induced Bruno to invest) – See paragraphs 21 to 31.
Practice – Topic 5702
Judgments and orders – Summary judgments – Jurisdiction or when available or when appropriate – The Supreme Court of Canada stated that “Summary judgment may not be granted under [Ontario Civil Procedure] Rule 20 where there is a genuine issue requiring a trial. As outlined in the companion Mauldin appeal, the motion judge should ask whether the matter can be resolved in a fair and just manner on a summary judgment motion. This will be the case when the process (1) allows the judge to make the necessary findings of fact, (2) allows the judge to apply the law to the facts, and (3) is a proportionate, more expeditious and less expensive means to achieve a just result. If there appears to be a genuine issue requiring a trial, based only on the record before her, the judge should then ask if the need for a trial can be avoided by using the new powers provided under Rules 20.04(2.1) and (2.2). She may, at her discretion, use those powers, provided that their use is not against the interest of justice” – See paragraph 22.
Cases Noticed:
Derry v. Peek (1889), 14 App. Cas. 337 (H.L.), refd to. [para. 18].
Parna v. G. & S. Properties Ltd. et al., [1971] S.C.R. 306, refd to. [para. 19].
Snell v. Farrell, [1990] 2 S.C.R. 311; 110 N.R. 200; 107 N.B.R.(2d) 94; 267 A.P.R. 94, refd to. [para. 19].
Angers v. Mutual Reserve Fund Life Assn. (1904), 35 S.C.R. 330, refd to. [para. 20].
Statutes Noticed:
Rules of Civil Procedure (Ont.), rule 20 [para. 22].
Authors and Works Noticed:
Osborne, Philip H., The Law of Torts (4th Ed. 2011), p. 369 [para. 27].
Counsel:
Javad Heydary, Jeffrey D. Landmann, David K. Alderson, Michelle Jackson and Jonathan A. Odumeru, for the appellant;
Sarit E. Batner, Brandon Kain and Moya J. Graham, for the respondent;
Malliha Wilson and Christopher P. Thompson, for the intervener, the Attorney General of Ontario;
Allan Rouben and Ronald P. Bohm, for the intervener, the Ontario Trial Lawyers Association;
David W. Scott, Q.C., Patricia D.S. Jackson and Crawford Smith, for the intervener, the Advocates’ Society;
Paul R. Sweeny and David Sterns, for the intervener, the Canadian Bar Association.
Solicitors of Record:
Heydary Hamilton, Toronto, Ontario, for the appellant;
McCarthy Tétrault, Toronto, Ontario, for the respondent;
Attorney General of Ontario, Toronto, Ontario, for the intervener, the Attorney General of Ontario;
Allan Rouben, Toronto, Ontario; SBMB Law, Richmond Hill, Ontario, for the intervener, the Ontario Trial Lawyers Association;
Borden Ladner Gervais, Ottawa, Ontario; Torys, Toronto, Ontario, for the intervener, the Advocates’ Society;
Evans Sweeny Bordin, Hamilton, Ontario; Sotos, Toronto, Ontario, for the intervener, the Canadian Bar Association.
This appeal was heard on March 26, 2013, before McLachlin, C.J.C., LeBel, Abella, Rothstein, Cromwell, Karakatsanis and Wagner, JJ., of the Supreme Court of Canada. The following decision was delivered for the court, in both official languages, by Karakatsanis, J., on January 23, 2014.
