Earlier this year, we wrote on the decision in Hockney v. Kneeland,^[1] where Justice Myers of the Ontario Superior Court compelled an Estate Trustee to pass their accounts following excessive delay in the administration of an Estate.

The Estate Trustee ultimately did not provide an accounting or respond to the litigation. Accordingly, the court has issued a decision finding her in breach of trust and her fiduciary duties and that she caused emotional distress to the beneficiaries.^[2]

Background

Hockney concerned the Estate of Mary Jane Hockney (the “Deceased”) who died in 2014. The Deceased made a Last Will and Testament appointing Mary Jane Kneeland (“Ms. Kneeland”) as her Estate Trustee. Ms. Kneeland prepared the Deceased’s Will and is licensed by the Law Society to practice law in Ontario.^[3]

The assets of the Deceased consisted of approximately $255,000. For more than a decade, Ms. Kneeland held Estate funds in trust for the beneficiaries and refused to account. Between 2014 and 2022, Ms. Kneeland sent various sporadic reporting letters and emails to the beneficiaries, advising of purported delays in the administration of the Estate with the promise of distributions. In 2017, Ms. Kneeland provided the beneficiaries with cheques of $15,000 each, which totalled $105,000. This left $146,571.89 remaining in the Estate.^[4]

The beneficiaries of the Estate raised concerns about the lack of communication and delay in the administration of the estate. The Law Society of Ontario cautioned Ms. Kneeland about her communication, delay, and practice management, but no further action was taken. Notwithstanding, in a written undertaking in February 2022, Ms. Kneeland committed to complete the estate administration by no later than June 30, 2023. This did not occur, and she was not heard from since October 2022.^[5]

Application

In September 2024, the beneficiaries commenced an application to require Ms. Kneeland to account. Extensive efforts were made to serve Ms. Kneeland including eight unsuccessful attempts. The court was however satisfied that she was duly served.^[6]

Justice Myers of the Ontario Superior Court was incensed at the prolonged delay and lack of accountability from Ms. Kneeland. His Honour noted how Ms. Kneeland had evaded service and has not attended the proceedings, despite being duly notified. Accordingly, the court ordered Ms. Kneeland to commence an application to pass her accounts as Estate Trustee by no later than April 30, 2025, and emphasized that she should expect strict enforcement of the order.^[7]

Default Judgment

In a subsequent Order dated April 7, 2025, Justice Myers converted the application into an action and set the deadline for Ms. Keenland to provide a Statement of Defence by May 16, 2025. Ms. Kneeland did not provide a Defence and was accordingly noted in default.^[8]

In addition to the amount sought in their Statement of Claim, the beneficiaries sought damages in the amount of $8,000 each for distress caused by Ms. Kneeland’s conduct. Each testified to the emotional toll the decade-long litigation had on them, including:

• Emma Hockney, who suffered the distress of Ms. Kneeland’s ongoing failure to meet her obligations. Emma wished to use her inheritance to purchase a property which could not occur;^[9]
• Jack Hockney, who enrolled in a university program with the expectation of receiving his inheritance. Given no monies was received he was required to withdraw from the program and argued that had he continued and obtained a qualification he would be in a different financial position;^[10] and
• Will Hockney, who likewise was required to drop out of university given no inheritance was received, thereby putting him in a worse financial position that he would have been but for Ms. Kneeland’s excessive delay.^[11]

Notably, His Honour found that he would have been “inclined to award punitive damages in at least the amount sought for distress due to the egregious and intentional wrongdoing of Ms. Kneeland”.^[12] The court granted default judgment against Ms. Kneeland in the amount of $146,571.89 plus $56,000 for aggravated damages and prejudgment interest.^[13]

Concluding Comments

Once again, Hockney v. Kneeland demonstrates the strict fiduciary duties and obligations that an Estate Trustee are held to in Ontario. Justice Myers summarised the case and the breaches by Ms. Kneeland as follows:

This case is an egregious example of breaches of duty and is made worse by the fact that the defendant is a lawyer who has been allowed to repeatedly ignore her duties to people who thought they could rely on her professionalism.

The defendant’s failure to carry out her duties and failure to pay to the plaintiffs the money due to them amounts to a breach of trust and breach of fiduciary duties at minimum. It is also a tortious conversion (or civil theft) of the funds. It also amounts to an unjust enrichment for which there is no juridical justification offered.^[14] [emphasis added]

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[1] Hockney v. Kneeland, 2025 ONSC 1309.

[2] Hockney v. Kneeland, 2025 ONSC 3592 (“Hockney”).

[3] Hockney v. Kneeland, 2025 ONSC 1309 at paras 1 – 3.

[4] Hockney v. Kneeland, 2025 ONSC 1309 at paras 12, and 21.

[5] Hockney v. Kneeland, 2025 ONSC 1309 at paras 13, 19 and 20.

[6] Hockney v. Kneeland, 2025 ONSC 1309 at paras 24 and 25.

[7] Hockney v. Kneeland, 2025 ONSC 1309 at para 35.

[8] Hockney at para 1.

[9] Hockney at paras 14 and 15.

[10] Hockney at paras 20 and 21.

[11] Hockney at paras 18 and 19.

[12] Hockney at para 12.

[13] Hockney at para 30.

[14] Hockney at paras 5 and 6.