ONTARIO COURT OF APPEAL ORDERS STAY OF SALE OF ESTATE ASSETS
ONTARIO COURT OF APPEAL ORDERS STAY OF SALE OF ESTATE ASSETS
The Leith v. Leith Estate 2024 ONCA 863 case involves two motions: one by Linda May Leith (the appellant) seeking an extension of time to file a notice of appeal from a trial judgment, and the other by Jason William Craig Leith (the respondent) seeking the sale of the remaining estate assets. The estate in question involves the late William Gordon Alexander Leith, whose wife, Ms. Leith, claims entitlement to an equalization payment under the Family Law Act (FLA) after being inadequately provided for in his will.
Key points:
- Equalization Payment: Ms. Leith is entitled to an equalization payment from the estate. The trial judge had ruled that properties and assets of the estate should be sold to determine the payment. Ms. Leith disputes the valuation date used for this calculation, arguing that it should be the day before her husband’s death, not the date of sale.
- Extension of Time: Ms. Leith requested an extension of time to file her notice of appeal, which was granted due to an inadvertent calculation error regarding the appeal period. The extension was given, with the final deadline set for December 6, 2024.
- Motion for Sale of Assets: Mr. Leith sought the sale of remaining estate assets. However, Ms. Leith contested this, especially the sale of the family home, arguing it should be stayed until the correct valuation date for the equalization payment is determined. She also claimed that selling the home prematurely would cause her irreparable harm, as she is 80 years old and relies on the estate for her financial well-being.
- Stay of Sale: The judge decided to grant a stay of the sale of the remaining estate assets, including the home farm, pending the appeal’s outcome. The stay was granted due to the serious issue of the incorrect valuation date, potential irreparable harm to Ms. Leith, and the lack of prejudice to Mr. Leith or the estate if the sale is delayed.
- Costs: Ms. Leith was successful in both motions and was awarded costs of $6,921.25, which should be paid by Mr. Leith personally or from his share of the estate.
In summary, the court ruled in favor of Ms. Leith on both motions, extending the time for her appeal and staying the sale of the remaining estate assets until the appeal and valuation issue are resolved.
