Sherif Gerges Pharmacy Professional Corporation et al. v. Niam Pharmaceuticals Inc. et al
Sherif Gerges Pharmacy Professional Corporation on Its Own Behalf as Shareholder of and in the Name and on Behalf of Seva Drug Mart Inc.
Sherif Gerges on His Own Behalf and as Shareholder of and in the Name and on Behalf of Eglinton Drugs Inc.
Sherif Gerges, on His Own Behalf and as Shareholder of and in the Name and on Behalf of Woodbine Downs Healthcare Realty Inc
Niam Pharmaceuticals Inc.
Law Firm / Organization
Wilson Vukelich LLP
Connect Rx Inc., O/A Srx Health Wholesale & Distribution
Law Firm / Organization
Wilson Vukelich LLP
Adesh Vora Pharmacy Professional Corporation
Law Firm / Organization
Wilson Vukelich LLP
Adesh Vora
Law Firm / Organization
Wilson Vukelich LLP

Background

  • Sherif Gerges and Adesh Vora were 50% shareholders of Woodbine Downs Healthcare Realty Inc.
  • On April 12, 2024, Mr. Vora removed Mr. Gerges as a director without his consent.
  • He then sold three properties without informing Mr. Gerges, generating net proceeds of $2,911,842.79.
  • The funds were transferred out of Woodbine Downs:
    • $2,028,742 to Niam Pharmaceuticals Inc., controlled by Mr. Vora, for undocumented loan repayments.
    • $689,259.80 to Seva Drug Mart Inc. (jointly owned but controlled by Mr. Vora).
    • Additional smaller transfers, with no clear documentation.
  • By October 31, 2024, Woodbine Downs had a bank balance of $158.90.

Legal Issues & Requests

  1. Mareva Injunction (Asset Freezing Order) – To prevent further dissipation of funds.
  2. Preservation Order (Rule 45.02 of the Rules of Civil Procedure) – To secure funds in court.
  3. Production Order – To compel Mr. Vora to disclose transaction records.

Court’s Decision

  • Mareva Injunction Denied: Though a strong prima facie case for conversion was established, the court found no imminent risk of asset dissipation. Mr. Vora consented to holding $689,050 in trust.
  • Preservation Order Denied: The funds were no longer identifiable as a specific asset, a requirement under Rule 45.02.
  • Production Order Denied: Insufficient legal basis for immediate disclosure.
  • Costs: Mr. Gerges must pay $25,000 to Mr. Vora within 30 days.
Superior Court of Justice - Ontario
CV-24-00731492-00CL
Corporate & commercial law
$ 25,000
Respondent
18 November 2024