Rule 21 Archives

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Insider Intel: Navigating the Gray Areas of Insider Trading

May 9, 2023 No Comments

An “insider” is broadly defined, including the corporation, directors, officers, major shareholders, employees, and professionals like lawyers or accountants. Liability extends to those receiving confidential information from insiders (tippees). Insiders cannot tip others for trading advantages. If an insider tips an unrelated person, they are liable for damages and accountable to the corporation for benefits received.

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Will ChatGPT Replace Lawyers?

May 7, 2023 No Comments

In recent months, the rise of advanced artificial intelligence and natural language processing technologies, such as Large Language Models (LLMs) like ChatGPT, has sparked a debate about their potential impact on various industries, including the legal profession. The million-dollar question inevitably arises: Will LLMs replace lawyers (and perhaps judges also), or at the very least, lead to a massive paradigm shift in law practice?

Social Media Ad-vice: Advertising on Social Media

May 6, 2023 No Comments

Social media has changed advertising, and while traditional media still has a place in the market, social media’s massive potential consumer base is hard to ignore. Advertisers must now concentrate on social media engagement.

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Sorry, Not Sorry: Apologies & Retractions in Defamation Law

May 5, 2023 No Comments

In defamation cases, an apology may play a crucial role in the assessment of damages. However, it is important to note that courts lack the jurisdiction to order defendants to apologize. The existence of an apology, the sincerity of the defendant, and the extent of the publicity given to the apology are factors that courts consider when determining damages.

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Personal Boundaries: The Tort of Trespass to the Person

April 30, 2023 No Comments

Trespass to the person is a longstanding area of tort law that addresses actions involving direct physical contact or threats to an individual’s physical or mental well-being.

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Tracing Commingled Funds: Unraveling the LIBR Mystery

April 26, 2023 No Comments

The Lowest Intermediate Balance Rule (“LIBR“) is an essential concept in the legal world, particularly in cases involving the tracing of funds. It is an evidential rule that assumes that when a person commingles their own funds with funds belonging to someone else, they are assumed to have spent their own funds first.

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The Ins and Outs of Parenting Time: What You Need to Know

April 25, 2023 No Comments

Parenting time and decision-making responsibility are two different things in family law. This blog post will focus on parenting time, a term that has replaced the meaning of what was previously called “access” in the Divorce Act and most provincial statutes.

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Unconscientious, Unconscionable, Unfair: Equitable Fraud

April 24, 2023 No Comments

Traditionally, fraud has been understood as involving deceit or intentional misrepresentation. However, the courts have expanded the concept to encompass equitable or constructive fraud, which includes various forms of unfair dealing and unconscionable conduct in contractual matters.

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Suing a City: Abuse of Power Lawsuits

April 18, 2023 No Comments

Yes, believe it or not, you can sue a city. Municipal corporations, which include cities, are no longer immune to liability as they were in the past. They can be held accountable for various wrongdoings, such as tortious acts, breaches of contract, and neglecting statutory duties.

Rylands v. Fletcher: Property Damage Claims

April 15, 2023 No Comments

Rylands v. Fletcher is a landmark case in English tort law that established the principle of strict liability for certain harmful activities. The rule states that a person who uses their land for non-natural purposes and accumulates a potentially dangerous substance on their property may be held strictly liable if that substance escapes and causes damage to another’s property.

Opinion, Criticism, and the Law: A Guide to the Fair Comment Defence

April 15, 2023 No Comments

Fair comment is one of defamation law’s most important defences. It protects opinion on matters of public interest, but only when the underlying facts are true, the statement is recognizable as comment and not fact, and the opinion is one that a person could honestly hold. This article explains every element of the defence, the role of malice, and what the standard actually means in practice.

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The Fine Print: Notice Requirements in Ontario Defamation Law

April 14, 2023 No Comments

Most people focus on whether their defamation claim is strong. But in Ontario, whether you can even bring the claim depends on a six-week statutory notice requirement that must be met before filing. Miss it, and the action is gone regardless of its merits. This article explains exactly what the notice requirement demands, how discoverability affects the clock, and how the rules differ across Canada.

The Battle for Chattel: Understanding the Tort of Conversion

April 11, 2023 No Comments

The tort of conversion primarily deals with the unlawful interference of another person’s movable personal property, known as chattels. In contrast to trespass to goods, conversion demands more than just a simple invasion of the plaintiff’s possessory rights; it necessitates an interference that denies the plaintiff’s title.

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The Principal Residence Exemption

April 10, 2023 No Comments

The term “principal residence” refers to a taxpayer’s primary dwelling or housing unit for a specific tax year. The taxpayer, their spouse, common-law partner, former spouse, or child must ordinarily inhabit the residence. A personal trust can also claim a principal residence if it is regularly occupied by a specified beneficiary or their immediate family.

From Threats to Torts: The Law on Intimidation

April 10, 2023 No Comments

The tort of intimidation, a relatively less explored area of common law, has been recognized and established through a series of judicial decisions. The House of Lords in Rookes v. Barnard (“Rookes“) formally acknowledged the existence of this tort, which has since been accepted as part of the common law in Canada.

Starting a Cosmetics Business: For Entrepreneurs

April 9, 2023 No Comments

The Canadian cosmetics industry generates billions of dollars. In 2021, the cosmetics market in Canada generated approximately USD 1.24 billion in revenue, and industry revenue is expected to grow by 1.45% annually to reach USD 1.8 billion by 2024.

Domestic Contracts: Essential Knowledge for Ontario Couples

April 9, 2023 No Comments

Ontario’s Family Law Act (“FLA”) contains provisions under Part IV that regulate domestic contracts, including cohabitation agreements, marriage contracts, and separation agreements. These agreements primarily focus on legally enforceable matters, such as property division, spousal support, and children’s education.

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Understanding Spousal Support: Key Elements

April 8, 2023 No Comments

In family law, spousal support is central to helping spouses who have become financially disadvantaged due to the breakdown of a marriage or common-law relationship. This post examines the legal principles and case law surrounding spousal support, discussing child support priority, general principles, and various factors that influence support amounts and duration.

From Issuance to Transfer: The Life Cycle of Share Capital

April 7, 2023 No Comments

Share capital plays a crucial role in the world of corporations, serving as a primary means of ownership and property rights. In Canada, share capital is regulated by the Canada Business Corporations Act (“CBCA”), which serves as a model for most Canadian jurisdictions.

Dissecting Disobedience: A Closer Look at Civil Contempt

April 7, 2023 No Comments

Civil contempt of court is a complex legal concept that originates from the need to preserve justice and prevent obstruction. It encompasses a wide range of actions, from interfering with the due course of justice to undermining the authority of a court.

The Tax Maze: How Shareholder Loans Impact Your Taxes

March 25, 2023 No Comments

According to Section 15(2) of the Income Tax Act, a shareholder (or a person or partnership connected to the shareholder) may be deemed to have received a taxable benefit equal to the amount of a loan or debt made by a corporation. This taxable benefit is included in the shareholder’s income for the tax year in which the loan or debt arose.

Is Internet Communication a Broadcast in Defamation?

March 24, 2023 No Comments

Over time, Canadian provincial legislation regulating defamation has been updated to incorporate modern communication methods. However, since most of this legislation does not explicitly address the Internet, judges are often required to draw parallels between Internet communications and traditional media forms, such as newspapers and broadcasts, that are covered by the legislation.

The Entrepreneur’s Roadmap to Incorporating in Ontario

March 23, 2023 No Comments

Incorporating a company in Ontario has become more streamlined and accessible thanks to the introduction of the Ontario Business Registry on October 19, 2021. This guide will provide a detailed overview of the incorporation process, from preparing and submitting the required documentation to understanding the fees and legal obligations involved.

Waive Goodbye to Liability: Power and Limits of Liability Waivers

March 21, 2023 No Comments

Liability waivers are legal agreements that can limit or exclude the duty of care owed by an occupier in certain circumstances. Although waivers can be effective tools for businesses to minimize their legal exposure, courts carefully scrutinize these agreements to ensure they are fair and reasonable.

I Was Sued, Now What? (A Step-by-Step Guide)

March 20, 2023 No Comments

Litigation is a complex process that requires careful attention to detail and a thorough understanding of the rules and procedures that govern the legal system. In this blog post, we explore the various stages of a lawsuit in Ontario, from the initial pleadings to the final trial.

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All for One, and One for All: Class Action Certification in Canada

March 19, 2023 No Comments

In the Canadian legal landscape, class actions represent a powerful mechanism for individuals who have suffered similar harm or losses to collectively seek legal redress against a common defendant. These lawsuits serve multiple purposes, such as providing access to justice for people who might not have the means to pursue individual litigation, encouraging behavioural modification in large corporations or organizations, and promoting judicial efficiency by consolidating numerous related cases into a single legal action.

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Drafting an Effective Shareholders’ Agreement

March 18, 2023 No Comments

An essential contract for small non-offering corporations, shareholders’ agreements define the rights, privileges, liabilities, and responsibilities of each shareholder. These agreements, also known as “unanimous shareholders’ agreements,” offer a framework to govern various aspects of a corporation’s functioning, such as delineating shareholder roles, placing limitations on certain actions, and regulating share transfers.

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Business Insurance for Ontario Business Owners

March 17, 2023 No Comments

Running a successful business in Ontario requires dedication, hard work, and a thorough understanding of the various types of insurance available to protect your company’s assets and interests. In this overview, we will explore the ins and outs of the eight different insurance options available to Ontario-based businesses, helping you make informed decisions about the coverage your business needs to thrive.

The Blurred Lines of Business: Tackling the Tort of Passing Off

March 17, 2023 No Comments

The tort of passing off in Canadian law is founded upon the notion that no individual should be allowed to represent their products or services as those of another. The Supreme Court of Canada has set forth three key elements that a plaintiff must establish to succeed in a passing off action: goodwill, misrepresentation, and damage.

Canadian Class Actions: A Beginner’s Guide to Collective Litigation

March 16, 2023 No Comments

Class action lawsuits serve as an important mechanism for plaintiffs in Canada to pursue legal remedies as a collective. This type of litigation offers a more efficient way to resolve disputes that share common issues.

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