Disputes over family businesses often carry into estate litigation. The recent Ontario Court of Appeal decision in Wyszatko v. Wyszatko Estate shows how easily the line between personal and estate property can become blurred and lead to years of conflict.
In the early 1960s, Nadia and Albert built two marinas in East Gwillimbury. When Albert died in 1990, his will left half of his interest to one son, Teddy. Over time, tensions developed between Teddy and the rest of the family, and in 2010 he sued his mother and siblings. Nadia later made a new will in 2011 leaving the marinas to another son, Richard, and excluding Teddy.
After Nadia’s death, her children Julia, Richard, and Irene were appointed as estate trustees. Teddy’s claim was settled in 2014 for $485,000. To fund the settlement, Richard asked Julia and Irene to each lend him $100,000, promising repayment once the estate was settled. Years later, the loans remained unpaid and the siblings could not agree on how to manage the estate. Julia applied to the court for directions on several issues and was mostly successful.
On appeal, Richard argued that the judge had misunderstood the facts and imposed unfair costs. The Court of Appeal disagreed. It confirmed that an appeal court will not reexamine factual findings unless there is a clear and overriding error. The only correction was to clarify that the $100,000 loan was made to the estate, not to Richard personally.
The court also upheld the finding that Richard owed occupation rent. After the settlement, he continued to run both marinas on estate land without permission, treating the property as his own. The judge ordered rent of $2,000 per month until an appraisal could determine the proper amount. The appeal court agreed with this outcome.
The decision ends with a reminder that findings of fact and costs are owed strong deference. The costs order of $104,722 in Julia’s favour was upheld in full.
This case highlights the importance of documenting family business arrangements and keeping clear records of loans or expenses paid on behalf of an estate. When personal dealings and estate assets overlap, even good intentions can lead to serious disputes.
Thanks for reading.
Grey Wen