Restitution Discussion Group Archives
| Sender: |
A Moore |
| Date: |
Thu, 24 Nov 2005 13:38:40 -0500 |
| Re: |
Knowing assistance or receipt or unjust enrichment conundrum |
Hello Everyone,
Here's the conundrum.
Our corporation is a plaintiff in a lawsuit in Ottawa
Canada.
There are three defendants in the lawsuit: an ex-director
of the plaintiff Canadian Corporation, his wife and his wife's Ontario
Corporation.
In 2003 the defendant director had several clients make
payments out to his wife's numbered company instead of our company.
When he was caught he agreed to a settlement to repay
the diverted revenue. A short time later he filed for bankruptcy along
with his wife's numbered company.
The only defendant left is his wife who has all the assets
in her name.
The wife was the only share holder and director of her
company; she was also the only signing officer on the bank account which
she opened by depositing the first of the diverted payments in April 2003.
She incorporated the company in 1994 but sold the company's client list
in 1997. She kept the company dormant until April 2003.
Bank records show some cancelled checks made out to the
wife' s personal benefit. All of the checks were signed by the wife but
often the payee was filled out by her husband.
In her defence she claims that she knows nothing of her
husband's business, that she opened the bank account only to take advantage
of a tax loss from 1997 that she thought would be possible on account
of her obtaining a real estate license in September 2003. She denies any
unjust enrichment because she claims that the company owed her money as
a result of selling her the client list at a loss in 1997.
By virtue of a wealthy family she has unlimited resources
for legal expenses. We on the other hand do not and after 14 months of
litigation have to decide whether or not this is worth pursuing.
Any insights regarding whether there is a good chance
on realising a judgement against the sole solvent defendant for either
knowing assistance, knowing receipt or unjust enrichment.
Sincerely A. Moore
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