Application: The Applicants sought to set aside two consent judgments obtained by Owens Wright LLP against their insolvent clients (2088556 Ontario Inc. and Greenvilla).
Main Issues Raised:
Abuse of Court Process: The Applicants argued the judgments were obtained through abuse of process, claiming Owens Wright LLP failed to properly serve notice to RSM (the receiver) and continued to secure judgments without proper defenses being filed.
Fraudulent Preference: The judgments were alleged to be attempts to improperly prefer Owens Wright LLP as a creditor over others, in violation of the Assignments and Preferences Act.
Court Findings:
The court found that both judgments were obtained abusively, lacking proper notice and undermining the fairness of the legal process.
The court also determined that the consent judgments amounted to a fraudulent preference, designed to prioritize Owens Wright LLP over other creditors, which is prohibited under the Assignments and Preferences Act.
Outcome: The consent judgments were declared null and void, and Owens Wright LLP was ordered to repay $739,649.70 to the Applicants.
