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ARTICLE · 13 APRIL 2023

Claim Commenced By Special Purpose Vehicle Dismissed As Champertous

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The Ontario Superior Court of Justice has dismissed a $2.5 million lawsuit against a number of defendants for fraud and breach of trust on the basis that the claim was champertous...

CanadaLitigation, Mediation & Arbitration
James R.G. Cook
James R.G. Cook
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The Ontario Superior Court of Justice has dismissed a $2.5 million lawsuit against a number of defendants for fraud and breach of trust on the basis that the claim was champertous and improperly brought in the name of a numbered company that was incorporated solely for the purpose of pursuing the claims in Ontario: 2770095 Ontario Inc. v. Morgan, 2023 ONSC 1924 (CanLII).

An international corporation based in Mexico, Affinitas, operated as a payment facilitator, helping internet merchants integrate and manage online sales (primarily in online gaming). Affinitas' merchant clients sell products and services online to their own customers who pay for those items via credit and debit cards. The acquiring bank then deducts its fees and remits the payment to the merchants. Affinitas did not have a subsidiary in Ontario.

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