Background & Claims
- BC Ltd. owned a one-third interest in property at 1397 Anderson Road, Sharbot Lake, Ontario, but was dissolved in 2007.
- Mark Geoghegan, sole shareholder, claimed he was unaware of the dissolution until 2020 and was restoring the company.
- Kelly Alarie applied to have BC Ltd.’s forfeited interest transferred to her, without informing Mark.
- Diegel’s law firm represented Alarie in this application; plaintiffs alleged the firm misrepresented ownership to the government.
- Plaintiffs sought removal of Martin Diegel as defense counsel, arguing:
- He was a necessary witness regarding the application process.
- A conflict existed between defendants, as Carol Geoghegan’s actions could lead to crossclaims.
Court’s Analysis & Ruling
-
Lawyer as Witness:
- The court found Diegel’s evidence was not crucial, as Jacob-Charles Diegel (not Martin Diegel) handled the application.
- Solicitor-client privilege remained intact, limiting admissible testimony.
- Trial judge could later decide if Diegel should testify, but disqualification was premature.
-
Conflict of Interest:
- No present legal conflict between defendants; crossclaims were speculative.
- Plaintiffs lacked standing to argue on behalf of defendants regarding conflicts.
Outcome
- Motion Dismissed; Diegel remains as counsel.
- Plaintiffs must pay $9,900 in costs.
- Plaintiffs may reapply if new evidence emerges.
