Debono v. JCD Property Ltd.
David Debono
Law Firm / Organization
Levitt LLP
Lawyer(s)

Peter Carey

Law Firm / Organization
Levitt Di Lella Duggan & Chaplick LLP
Lawyer(s)

Spencer F. Toole

Elizabeth Muscat
Law Firm / Organization
Levitt LLP
Lawyer(s)

Peter Carey

Law Firm / Organization
Levitt Di Lella Duggan & Chaplick LLP
Lawyer(s)

Spencer F. Toole

JCD Property Ltd.
Law Firm / Organization
Hull and Hull LLP
Law Firm / Organization
McMillan LLP
Lawyer(s)

Victor Kim

JCD Inc.
Law Firm / Organization
Hull and Hull LLP
Law Firm / Organization
McMillan LLP
Lawyer(s)

Victor Kim

Joseph Debono
Law Firm / Organization
Hull and Hull LLP
Law Firm / Organization
McMillan LLP
Lawyer(s)

Victor Kim

George Debono
Law Firm / Organization
Hull and Hull LLP
Law Firm / Organization
McMillan LLP
Lawyer(s)

Victor Kim

Joseph Debono, In His Capacity As Estate Trustee for the Estate of Carmen Debono
Law Firm / Organization
Hull and Hull LLP
Law Firm / Organization
McMillan LLP
Lawyer(s)

Victor Kim

George Debono, In his Capacity As Estate Trustee for the Estate of Carmen Debono
Law Firm / Organization
Hull and Hull LLP
Law Firm / Organization
McMillan LLP
Lawyer(s)

Victor Kim

Nesci, Jennifer
Law Firm / Organization
Levitt LLP
Lawyer(s)

Peter Carey

Law Firm / Organization
Levitt Di Lella Duggan & Chaplick LLP
Lawyer(s)

Spencer F. Toole

Overview

This case primarily concerns wrongful dismissal and oppression claims brought by David Debono and Elizabeth Muscat against their late mother’s estate and two family-owned corporations. A related lawsuit involves claims by the estate (managed by Joseph and George Debono) alleging financial misconduct by David and Elizabeth.

Wrongful Dismissal & Oppression Claims

  • David and Elizabeth worked in the family’s real estate business for decades.
  • After their mother’s death in 2022, Joseph and George fired them, leaving them without income.
  • They sued for wrongful dismissal, seeking two years’ severance and alleging oppression.
  • They later withdrew their oppression claims, abandoning their argument for corporate shares.

Estate’s Financial Claims

  • The estate alleges David and Elizabeth misused over $7 million in loans and engaged in questionable transactions while their mother was incapacitated.
  • The court found financial inconsistencies and ruled that David and Elizabeth have not fully disclosed financial records.

Court’s Decision

  • No interim severance or legal costs will be paid to David and Elizabeth.
  • The in terrorem clause will not be enforced at this stage, so their inheritance is not yet at risk.
  • They must fully disclose financial records and emails related to the business.
  • Both motions were dismissed, and costs will be determined at trial.

Conclusion

The court emphasized financial transparency before wrongful dismissal claims can proceed. The estate trustees retain control, but litigation over financial misconduct remains unresolved.

Superior Court of Justice - Ontario
CV-24-00715668-00ES
Labour & Employment Law
Defendant