Executive Summary: Key Legal and Evidentiary Issues

• Ms. MacIntyre, the former estate administrator, was found to have breached fiduciary duties through misappropriation of estate funds.

• A $184,513 dividend from Hazelmere Contracting Ltd. was never accounted for and deemed misappropriated.

• Legal fees paid from the estate were used in part for Ms. MacIntyre’s personal legal matters.

• Storage costs and Desjardins Visa charges were improperly reimbursed by the estate for personal use.

• The defendant failed to comply with court orders and default judgment was entered against her.

• Punitive damages were awarded to the children beneficiaries due to high-handed and oppressive conduct.

Facts and outcome of the case

Background and appointment of the administrator

Georg Johann Louis Leibenzeder died intestate on September 5, 2016. His common-law spouse, Glenda Ann MacIntyre, was appointed as administrator of the estate in November 2016. The estate included four real properties and significant liquid assets. Ms. MacIntyre, also a principal beneficiary under intestacy laws, was entitled to a preferential share of $150,000 and half of the estate residue. The remainder was to be divided between Mr. Leibenzeder’s two adult children.

Breakdown in estate administration

From 2016 onward, estate administration was marred by delays, non-disclosure, and suspected misappropriations. Ms. MacIntyre failed to pass accounts or file final tax returns, despite repeated promises and court orders. Properties were sold without beneficiary consultation, and funds were dispersed or depleted without explanation. Beneficiaries, represented by Ms. Bailey, eventually launched legal action in 2020 to remove Ms. MacIntyre and demand proper accounting.

Removal and default judgment

Ms. MacIntyre was removed as administrator in January 2022 by court order due to repeated breaches and non-cooperation. The estate subsequently filed a new action in April 2022 against her, which she did not defend. A default judgment was entered against her in June 2022. The judgment found her liable for misappropriating estate funds, failing to disclose or transfer assets, and acting contrary to court directions. Ms. MacIntyre had also withdrawn $1.4 million from estate accounts just before her removal, which was later returned under pressure from court proceedings.

Assessment of damages

Justice MacNaughton assessed damages summarily due to the lack of defence and overwhelming evidence. Special damages totaled $335,062.10, including improper legal fees, the unaccounted Hazelmere dividend, storage costs for non-estate property, and misuse of estate bank and credit accounts. Additionally, the court awarded $150,000 in punitive damages payable specifically to the children beneficiaries to avoid unjust enrichment of Ms. MacIntyre, given her status as an estate beneficiary.

Punitive damages and legal reasoning

The court found that punitive damages were justified because of the severity and duration of Ms. MacIntyre’s conduct. Her actions were described as deliberate, high-handed, and in contempt of her fiduciary obligations. The mismanagement delayed the administration, increased costs, and left the estate vulnerable to tax penalties. Her lack of participation, despite legal representation, reinforced the court’s view of her disregard for legal process and the interests of other beneficiaries.

Final outcome

The total award against Ms. MacIntyre amounted to $485,062.10. Of this, $335,062.10 represented special damages to the estate, and $150,000 was in punitive damages awarded to the two children beneficiaries. Special costs related to her removal were also granted, with quantum to be determined separately by the registrar. The court’s decision stands as a comprehensive condemnation of fiduciary breach and estate mismanagement, reinforcing the obligation of administrators to act transparently and in good faith.