Lacroix v Kalman: The Proportional Duty to Account

In this decision, Justice Maddalena was asked to order the respondent, Paulette Kalman to pass her accounts for the period she acted as the deceased’s attorney for property, and to produce statements for accounts in which she had an interest.

The application was brought by Paul Lacroix, Paulette’s brother. Paul and Paulette are two of five children of Viola and Jean Paul Lacroix. Paul and Paulette were jointly appointed estate trustees for their mother Viola’s estate.

Viola died in 2013. She had been predeceased by her husband, who died in 1992.

Paulette had been involved in her parents’ finances dating back to the 1980s. In 1985, Paulette was on a joint bank account with her father until his death in 1992. After her father died, Paulette added Viola to that account.

Paulette also added her mother to her own bank account in 1987. That account held monies deposited by both Paulette and her mother.

Paulette’s brother Paul alleged that Paulette had misused her authority as a fiduciary, in her dealings with her parents’ finances. The allegations specific allegations related to a sum of approximately, $10,000.00 and monthly payments in the range of less than $200.00 and some additional cash withdrawals. Paulette had explanations for these transactions and the manner in which she dealt with the joint accounts but explained that she had not kept precise records of her dealings with the joint accounts.

Referring to the earlier decision of McAllister Estate v. Hudgin¹, Maddalena J. noted that the court has significant discretion as to whether to order an attorney to pass accounts in accordance with section 42 of the Substitute Decisions Act, 1992.

Justice Maddalena carefully noted the modest nature of the estate, and consequently declined to make an order that Paulette pass her accounts. Maddalena J. did however, require Paulette to account by providing the disclosure of the relevant banking documentation within ninety days.

The court recognized Paulette’s duty to account to Paul but adjusted the manner of accounting required in light of the funds available and in dispute.

—

1. [2008] O.J. No. 3282

Author

WEL Partners

View all posts

Author

Search Blog by Keyword(s)

Site Search

Site Map

OUR PEOPLE

PRACTICE AREAS

RESOURCES

INTAKE

ASSOCIATIONS

OTHER LINKS