Executive Summary: Key Legal and Evidentiary Issues

• Plaintiffs alleged negligent misrepresentation, fraudulent misrepresentation, breach of fiduciary duty, unjust enrichment, and conspiracy.

• Court found negligent misrepresentation proven but dismissed the other causes of action.

• Defendants’ counterclaims, including defamation and abuse of process, were all dismissed.

• The conduct of the defendants, particularly Sylvia Murr, led to increased and double cost awards.

• Settlement offers played a key role in the cost decisions, especially due to their reasonableness and timing.

• Complex litigation involved multiple parties, overlapping claims, and protracted proceedings over five years.

Facts and outcome of the case

Background and parties

The case arose from a failed business and investment relationship between several individuals and entities associated with a law firm, Hart Legal. The plaintiffs included Alistair Vigier, his company The Wealthy Franchise Consultants Inc., his fiancée Jova Xu, and his father Etienne Vigier. They alleged they were misled into making investments and loans to Hart Legal, operated by Peter Darren Steven Hart (also known as Darren Hart), Sylvia Murr, and associated entities such as Hart Management Inc., Victory Litigation Lending Corp., and Invictus Holdings Inc.

Following losses on those investments, the plaintiffs sued the defendants for various causes of action including fraudulent and negligent misrepresentation, breach of contract, breach of fiduciary duty, unjust enrichment, and conspiracy. The defendants denied liability and filed a counterclaim, alleging that the plaintiffs and former bookkeeper Lisa Howden conspired to bring down the business and committed defamation and other wrongs.

Course of proceedings

The trial began in January 2023, paused in March 2023, and resumed in September 2023. During the break, Darren Hart was petitioned into bankruptcy. The court lifted the stay on proceedings against him at the plaintiffs' request. Settlements were reached with Hart and several other defendants mid-trial, narrowing the scope of the dispute to focus on Sylvia Murr, Invictus Holdings Inc., and Lisa Howden.

The plaintiffs' remaining claims against Murr and Invictus centered on misrepresentation and related financial wrongdoing. The counterclaim by Murr and Invictus accused the plaintiffs and Howden of defamation and unlawful interference with economic relations.

Judgment and findings

Justice Gropper held that the plaintiffs had proven their claim of negligent misrepresentation against Sylvia Murr and Invictus. Alistair was awarded $112,500 CAD and $50,000 USD; Jova received $50,000 USD. Claims for fraudulent misrepresentation, conspiracy, breach of contract, breach of fiduciary duty, and unjust enrichment were dismissed. The counterclaims were all dismissed as baseless.

Lisa Howden, named as a defendant in the counterclaim, was found to have done nothing wrong. The claims against her were described as frivolous and harmful to her personally and professionally. She was completely exonerated.

Costs decision

Justice Gropper awarded costs in favor of the plaintiffs and Ms. Howden. Due to the defendants’ conduct—including late document disclosure, failure to admit basic facts, and trial delays—the court imposed increased costs at 1.5 times Scale B and double costs from the date of unaccepted settlement offers. Specifically:

• Plaintiffs received increased and double costs from July 27, 2023 onward.

• Lisa Howden was awarded a lump sum of $104,629.24, reflecting increased and double costs from November 28, 2022.

The court held that the defendants' misconduct, refusal to settle, and aggressive but unsupported counterclaims justified enhanced cost penalties. Joint and several liability for costs was imposed on Sylvia Murr and Invictus Holdings Inc.

Conclusion

While the plaintiffs did not succeed on all causes of action, the court found in their favor on negligent misrepresentation and awarded significant damages and costs. The decision also underscores the impact of litigation conduct and settlement dynamics on cost awards. Lisa Howden emerged entirely vindicated, receiving full compensation for her defense against unfounded allegations.