Key Issues:

1. Goldentrust’s Representation

   • Goldentrust sought leave for its principal, Peng Zhang, to represent it in ongoing litigation.
   • Defendants (Owners) opposed this, citing concerns over Zhang’s conduct and Goldentrust’s failure to comply with court orders.

2. Case Background

   • Goldentrust registered a $275,620.63 lien on the Owners’ property for construction work.
   • Owners counterclaimed for $1,953,000, alleging overcharging, deficiencies, and misrepresentations about Tarion coverage.
   • Goldentrust’s original lawyer withdrew in May 2024, and the company failed to retain new counsel within the required timeframe.

3. Court’s Findings

   • Goldentrust did not prove it was financially incapable of hiring a lawyer, relying on an inadequate Canada Revenue Agency tax assessment.
   • Zhang misrepresented Goldentrust’s legal representation in October 2024, falsely claiming to have re-retained the previous lawyer.
   • Goldentrust repeatedly failed to comply with court orders, including delays in paying costs.
   • Zhang demonstrated an inability to properly represent Goldentrust due to his misrepresentations, lack of understanding of legal requirements, and prior misconduct.

4. Decision:

   • The motion to allow Zhang to represent Goldentrust was denied.
   • Owners were awarded $2,000 in costs for a prior motion.
   • Further cost submissions were ordered, with deadlines set for March 19 and March 24, 2025.
   • Final monetary award was not specified.

Legal Basis:

• Corporations must be represented by a lawyer (Rule 15.01(2)).
• Exceptions require financial incapacity and reasonable conduct, neither of which were demonstrated.
• Misleading the court and violating orders undermine credibility and access to discretionary relief.