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Passing of Accounts: New Rules

Lady Liberty

On January 1, 2016, a number of changes to the Rules of Civil Procedure came into force. Some of these changes affect the process of bringing and responding to an Application to Pass Accounts under Rule 74. 18.

The changes that will have an immediate effect on the daily practice of estate litigation lawyers and litigants include:

  • Rule 74.18(4) and (5) which extended the time requirement for service of the Notice of Application to Pass Accounts. Under the amended Rule, service in Ontario must be served at least 60 days before the hearing date specified in the Notice of Application (instead of 45 days under the old Rule). Service outside Ontario needs to be made at least 75 days before the hearing date specified in the Notice of Application (instead of 60 days under the old Rule).
  • Rule 74.18(7) extends the time requirement for service of a Notice of Objection to Accounts from 30 days to 35 days.
  • Rule 74.18(8)-(8.3) introduces a new a "type" of response to the Application: Request for Further Notice.
  • Rule 74.18(8.4) creates a new time requirement for withdrawal of a Notice of Objection. The withdrawal must be served on the Applicant and filed with proof of service at least 15 days before the hearing date of the Application.
  • Rule 74.18(8.6) introduces another new feature. It allows any person served with the Application to Pass Accounts to seek costs and sets the timeline for the request. The person seeking costs must serve the Applicant with the request for costs and file it with proof of service at least 10 days before the hearing date of the Application.
  • Rule 74.18(9) extends the time requirement for filing the Application Record when seeking Judgment without a hearing from 5 days before the hearing to at least 10 days before the hearing.
  • Rule 74.18 (9)(a) (iv.1) adds a requirement to include in the Application Record any request for increased costs and responses, if filed, and costs outlines.
  • Rule 74.18(11)-(11.5) amends the Rule regarding a request for increased costs. Under the new Rule, the person requesting increased costs must file a costs outline with the request. The deadline for filing the request is now 15 days before the hearing date of the Application (instead of 10 days after service and 20 days before the hearing under the old Rule). An objection to the request now needs to be made 10 days before the hearing date (instead of 12 under the old Rule). The person making the request must file a supplementary record with the court at least 5 days before the hearing (instead of 10 days under the old Rule).
  • Rule 74.18(11.5)-(11.9) provides a detailed procedural guideline for contested passing of accounts hearing.
  • Rule 74.18(13.1)-(13.2) are new additions under which the Court may order a trial of the Application or an issue therein and may order mediation.

Some of these changes are small and easy to follow but others set new procedures and timelines. Caution is recommended by the lawyers and litigants to ensure that they are relying on the most current version of the Rules.

For more information, please contact Yasmin Vinograd at (613) 563-6693 or by email at [email protected].

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