6071376 Canada Inc. (607) appealed against a decision dismissing its application alleging that Dr. Mahmood Khedmatgozar and other respondents engaged in a conspiracy by unlawful means, including a fraudulent conveyance of shares.
The application judge found that 607 established the first element of the unlawful conduct conspiracy but failed to prove the remaining elements, particularly fraudulent intent.
Key Points:
The case focused on the sale of dental practices owned by Dr. Khedmatgozar and Dr. Demetrius Dalios to Capital Dentistry Group Limited (CDG), initiated before 607 obtained a judgment against Dr. Khedmatgozar.
607 argued the sale was a fraudulent conveyance designed to evade the judgment. However, the application judge found the transaction bona fide, initiated by MCA Dental Group Limited (MCA), and not fraudulent.
The Court of Appeal agreed with the lower court, noting that the sale process began before 607’s judgment and was part of a broader acquisition, indicating no fraudulent intent.
Outcome:
The appeal was dismissed as the Court of Appeal found no palpable and overriding error in the application judge’s decision.
607 was ordered to pay each set of respondents $15,000 in costs.
