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ARTICLE · 11 JULY 2022

Civil Contempt Finding Against Litigant For Breaching Receivership Order

Gardiner Roberts LLP
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Ontario courts maintain the inherent right to control their own processes and to sanction litigants who fail to abide by court orders.

CanadaCorporate/Commercial Law
James R.G. Cook
James R.G. Cook
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Ontario courts maintain the inherent right to control their own processes and to sanction litigants who fail to abide by court orders. While a finding of contempt is an exceptional order, courts will utilize this power to maintain the rule of law and the public's faith in the justice system.

The decision in Castillo v. Xela Enterprises Ltd., 2022 ONSC 4006 (CanLII), demonstrates how a court will assess a litigant's misconduct for breaching a court order to determine whether contempt has occurred.

The case arose from a dispute involving Xela Enterprises Inc. (Xela), a privately-owned Ontario family holding company overseeing the operations of several subsidiaries in Central and South America.

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