Summary: This case concerns the appeal of Juan Guillermo Gutierrez, who was found in civil contempt for actions associated with his control over Xela Enterprises Ltd. and its related entities. The contempt arose after Gutierrez, amidst legal disputes involving significant company assets and familial ties, violated a court order appointing a receiver by engaging in activities that undermined the receiver’s authority, specifically relating to corporate governance in foreign jurisdictions.

Key Points:

• Background: Gutierrez's sister, Margarita Castillo, had previously obtained a judgment against him and others for $4.25 million. In enforcement of this judgment, a receiver was appointed over Xela Enterprises. Gutierrez undermined this appointment by making a sworn declaration used to file a criminal complaint in Panama, challenging the legitimacy of corporate changes implemented by the receiver.
• Civil Contempt: The court found that Gutierrez’s declaration and actions constituted a breach of the receiver's authority, granted by the Ontario court, which explicitly prohibited such interference.
• Appeal Issues: Gutierrez challenged the Ontario court's jurisdiction over actions taken in foreign countries and the specific findings of contempt related to corporate governance.
• Court of Appeal Decision: The appeal was dismissed, with the court emphasizing the clear and substantial connections between Gutierrez's actions and Ontario, given that the corporate entities involved were managed from Ontario and the original court orders were issued there.

Outcome: All three aspects of the appeal were dismissed with costs in the agreed amount of $40,000 inclusive of disbursements and HST. In addition to affirming the findings of contempt, the court also maintained the award for costs on a full indemnity basis amounting to $563,485.00 against the respondent.