Simran Law: a receiver and investigator for two law firms, without notice

The order Justice Dunphy signed on October 19, 2026, in the Ontario Superior Court of Justice (Commercial List), on an application brought without notice to the respondents, puts Grant Thornton Limited over two bodies of property and keeps them apart. One is all the assets, undertakings and properties of two law firms, Simran Law Professional Corporation and JP Mann Law Firm Professional Corporation. The other is "all of the funds in either Affected Law Firms' possession or control that either Affected Law Firm was required to hold in trust," the "Trust Property," which "does not constitute Affected Law Firm Property." Over both, Grant Thornton is receiver, "without security." It is also investigator of the "Specified Transactions" and "Held Funds" identified in the order's Schedule A, "for the purposes of tracing, preserving, investigating and reporting to this Court concerning those transactions and funds," per the Receivership Order, Oct. 19, 2026, para. 2.

Schedule A has 25 numbered rows, each giving a "Policy Date," "Held Funds ($)," "FCT Insured," "Property," "Property Owner" and "Undischarged Mortgagee." The policy dates run from February 20 to September 21, 2026. Every row names RBC, BMO, CIBC or BNS under "Undischarged Mortgagee," with a limited partnership and an individual added beside CIBC on one row, and the schedule totals the "Held Funds ($)" column at $18,028,903.00, on a line labelled "Total Amount Advanced," per the Receivership Order, Oct. 19, 2026, Sched. "A". The order states no finding about any of them.

Brought without notice

FCT Insurance Company Ltd. applied under s. 101 of the Courts of Justice Act, on court file CL-26-00000446-000, naming as respondents the two firms and two individuals. The order recites that the court read three affidavits sworn October 14, 15 and 16, heard "the submissions of counsel for FCT Insurance Company Limited and the Law Society of Ontario," and was "advised that this Application is being brought without notice to the Respondents." It abridged service so that the application was "properly returnable today," per the Receivership Order, Oct. 19, 2026, recitals and para. 1. The order records no submissions for the respondents. The affidavits, any endorsement or reasons, and anything from the respondents are not in the record read for this piece.

The receiver's initial report is due by November 19, and the matter returns before the Commercial List at 9:00 a.m. on November 23 "for directions," the order's "Comeback Hearing." Paragraph 31 also lets "any interested party" apply "to vary or amend this Order on not less than seven (7) days' notice to the Receiver and to any other party likely to be affected by the order sought or upon such other notice, if any, as this Court may order," per the Receivership Order, Oct. 19, 2026, paras. 18, 31.

Accounts used in the practice of law

The receiver is "empowered and authorized, but not obligated, to act at once," and its listed powers include tracing and investigating the Specified Transactions, identifying "the source, destination, amount, timing and present location of funds connected with" them, inspecting records agreed or determined not to be privileged, retaining forensic accountants and other professionals, consulting the Law Society "as appropriate," and reporting to the court, per the Receivership Order, Oct. 19, 2026, para. 3.

The firms, the individual respondents, their partners, employees, agents and financial institutions, and everyone with notice of the order are restrained from "withdrawing, transferring, paying, disbursing, releasing, encumbering or otherwise dealing with" the firms' property or the Trust Property without the receiver's written consent or a further order. A financial institution with any account "used by any of the Respondents in connection with the practice of law, including any trust account, general or operating or other account" must, on notice from the receiver, place an administrative hold on it and, if the receiver directs, turn the funds over, per the Receivership Order, Oct. 19, 2026, paras. 7–8. Proceedings against the firms "related to the Specified Transactions" are stayed, per the Receivership Order, Oct. 19, 2026, para. 15.