McArthur v. McArthur: A Case of an Attorney Failing to Account
McArthur v. McArthur, 2024, https://canlii.ca/t/k7fw4
The decision in McArthur v. McArthur (“McArthur”),[1] involved a dispute between siblings Michael McArthur (“Michael”) and Susan Elizabeth McArthur (“Susan”) regarding the accounts for the Estate of their deceased mother, Lydia Dorothy McArthur (the “Deceased”).
The Deceased passed away in June 2019 and purportedly had diminished capacity to manage her property in the final few years of her life. The Deceased granted a continuing power of attorney appointing Susan, who denied ever acting as her attorney.
Following the Deceased’s passing, Michael commenced an application seeking an order that Susan pass her accounts as the Deceased’s attorney, alleging unexplained transfers and expenses. Michael’s evidence in support of the necessity for an accounting included the following:
- Proceeds from property sale – in 2017 the Deceased’s home was sold and the proceeds of sale placed into her Scotiabank account. A year later $300,000 was transferred into the Deceased’s investment account but the remaining proceeds were never accounted for;
- Cheques – Michael challenged the authenticity of the Deceased’s signatures on several cheques used for significant transactions, such as a $75,773.87 reimbursement to Susan and a $50,000 repayment to the Deceased’s ex-husband, Dalton McArthur.
- Miscellaneous payments – Michael also highlights a considerable amount of unexplained credit card payments and withdrawals from the Deceased’s bank accounts. Michael argued that some of these expenses, including LCBO and several hotels, did not align with the Deceased’s lifestyle or living situation at the time the payments were made.
Based on the documentary evidence, the court found that Susan acted as the Deceased’s attorney for property and was involved in the management of her property, notwithstanding her claims to the contrary. The court granted Michael’s relief and made an order for Susan to account for the period from October 2015 to June 2019, as he demonstrated reasonable grounds for the court to order an accounting. Prior to being forced to account, the court ordered Susan to provide an informal accounting supported by sworn affidavit. In the event, this proved deficient, then a mediation would follow and afterwards a formal passing of accounts.
The court awarded Michael full indemnity costs on his motion, emphasizing Susan’s refusal to provide disclosure and the need for transparency and accountability in the management of property as a fiduciary.
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[1] McArthur v. McArthur, 2024 ONSC 5806.
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Written by: Kimberly A. Whaley, Oliver O'Brien
Posted on: April 28, 2025
Categories: Commentary, Passing of Accounts
McArthur v. McArthur, 2024, https://canlii.ca/t/k7fw4
The decision in McArthur v. McArthur (“McArthur”),[1] involved a dispute between siblings Michael McArthur (“Michael”) and Susan Elizabeth McArthur (“Susan”) regarding the accounts for the Estate of their deceased mother, Lydia Dorothy McArthur (the “Deceased”).
The Deceased passed away in June 2019 and purportedly had diminished capacity to manage her property in the final few years of her life. The Deceased granted a continuing power of attorney appointing Susan, who denied ever acting as her attorney.
Following the Deceased’s passing, Michael commenced an application seeking an order that Susan pass her accounts as the Deceased’s attorney, alleging unexplained transfers and expenses. Michael’s evidence in support of the necessity for an accounting included the following:
Based on the documentary evidence, the court found that Susan acted as the Deceased’s attorney for property and was involved in the management of her property, notwithstanding her claims to the contrary. The court granted Michael’s relief and made an order for Susan to account for the period from October 2015 to June 2019, as he demonstrated reasonable grounds for the court to order an accounting. Prior to being forced to account, the court ordered Susan to provide an informal accounting supported by sworn affidavit. In the event, this proved deficient, then a mediation would follow and afterwards a formal passing of accounts.
The court awarded Michael full indemnity costs on his motion, emphasizing Susan’s refusal to provide disclosure and the need for transparency and accountability in the management of property as a fiduciary.
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[1] McArthur v. McArthur, 2024 ONSC 5806.
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