Family Feud Over Power of Attorney and Passing of Accounts: The Risks of Naming Your Children

Family Feud Over Power of Attorney and Passing of Accounts: The Risks of Naming Your Children

Court Grants Standing in Financial Dispute, Limits Medical Record Disclosure

Source: Shewa v. Shewa et al, 2025 ONSC 959

In a dispute over the management of an elderly individual’s financial affairs, the court granted two family members standing in the passing of accounts due to their involvement in care and financial matters, limited the disclosure of medical records to protect privacy while allowing relevant information, and upheld prior rulings on legal representation, deferring cost decisions to the judge overseeing the passing of accounts.

The case involves a dispute over the management of an elderly individual’s financial and personal affairs, complicated by allegations of financial mismanagement and a contested power of attorney. The individual, who suffers from dementia, had previously granted power of attorney for property and personal care to two of her children in 2017. However, concerns arose over their handling of her finances, leading the court to appoint the Public Guardian and Trustee (PGT) as her guardian for property in 2024.

The case has involved long-standing litigation, including disputes over the sale of the individual’s home, unpaid property taxes, and allegations that one of the children improperly used or forged a power of attorney. The court has also required a passing of accounts, during which one of the children must account for their management of financial affairs.

The Power of Attorney (POA) who must pass accounts is Sean Amani (formerly Jagdish Shewa).

Key Points:

• In 2017, Sundri Shewa signed a Power of Attorney for Property and Personal Care naming Meenu Shewa and Sean Amani as attorneys.
• However, a second Power of Attorney document surfaced, naming only Sean Amani as the sole attorney. There are allegations that this document was forged, but the court did not rule on that issue in this decision.
• Amani and Meenu managed Sundri’s property and finances until 2023, when Indu Shewa applied to have herself appointed as Sundri’s guardian for property and personal care.
• In October 2023, the court terminated all existing powers of attorney and appointed the Public Guardian and Trustee (PGT) to manage Sundri’s financial affairs, finding that none of her children were suitable as guardians.
• The court ordered Sean Amani to pass accounts for the time he managed Sundri’s property, which he failed to do in a timely manner, leading to delays in the case.

Since Amani was responsible for handling Sundri’s financial matters under the Power of Attorney, he is required to provide a full accounting of how he managed her assets, including bank transactions, property dealings, and expenditures.

Two other family members sought standing in the passing of accounts, arguing that their involvement in caregiving and financial matters made their participation necessary. The court granted their request, recognizing that findings in the proceeding could impact their legal and financial interests.

Additionally, the court addressed a request for full disclosure of medical records, balancing the need for relevant information with the individual’s right to privacy by only allowing the release of records directly related to capacity and financial decision-making. The matter continues under case management, with future hearings set to address outstanding issues.

The applicable laws in this case primarily come from Ontario statutes governing substitute decision-making, guardianship, and fiduciary responsibilities. The key laws include:

1. Substitute Decisions Act, 1992 (SDA), S.O. 1992, c. 30
   • Section 42: Governs the passing of accounts for guardians and attorneys for property, including who has standing to participate.
   • Section 62: Addresses the appointment of guardians for personal care and property, including temporary guardianship.
   • Parens patriae jurisdiction: Although not explicitly stated in the SDA, the court retains inherent jurisdiction to protect vulnerable individuals, including appointing temporary guardians.
2. Courts of Justice Act, R.S.O. 1990, c. C.43
   • Provides the court with case management powers and general authority to oversee guardianship and fiduciary matters.
3. Rules of Civil Procedure, R.R.O. 1990, Reg. 194
   • Governs the procedural aspects of the case, including standing, disclosure, and case management.
   • Rules 74 and 75: Relevant to estate litigation and passing of accounts.
4. Health Care Consent Act, 1996, S.O. 1996, c. 2, Sch. A
   • Governs decision-making regarding personal care and medical information disclosure.
   • Ensures privacy protections over personal health information unless legally required for court proceedings.
5. Personal Health Information Protection Act, 2004 (PHIPA), S.O. 2004, c. 3
   • Limits access to private medical records and sets guidelines for when and how they can be disclosed in legal proceedings.
6. Trusts and fiduciary principles (Common Law)
   • Governs the obligations of a person acting under a power of attorney or as a fiduciary, requiring proper record-keeping, transparency, and accountability.
   • Breach of fiduciary duty may lead to personal liability for improper financial dealings.
7. Case Law (Precedents)
   • BMO Trust Company v. Childs, 2019 ONSC 2637: Addressed standing in a passing of accounts, particularly the rights of family members with an interest in an incapable person’s affairs.
   • Vano (Re), 2012 ONSC 262: Discussed the importance of particularizing objections in a passing of accounts.
   • Ontario Federation of Anglers and Hunters v. Ontario (Minister of Natural Resources and Forestry), 2015 ONSC 7969: Provided guidance on determining whether a party is necessary to a proceeding.

These laws and precedents frame the court’s authority in deciding who has standing, how financial records are reviewed, and what medical information is disclosed in this ongoing dispute over the management of an elderly individual’s affairs.

Family disputes over Power of Attorney can quickly become emotionally and legally complex, as seen in recent cases involving allegations of mismanagement, financial conflicts, and even fraud. At Bobila Walker Law, we specialize in estate litigation, guardianship disputes, and passing of accounts, ensuring that your loved one’s affairs are handled fairly and transparently. Whether you’re contesting a questionable POA, seeking financial accountability, or navigating complex family dynamics, our experienced legal team is here to protect your rights and advocate for justice. Contact us today for a confidential consultation at 416-847-1859.

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