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Note: Kerry Adler (Husband/Applicant) was ordered by Ontario Superior Court of Justice to place a certificate of pending litigation on a particular property, and to post a letter of credit or bond in the amount of CAD 4 million in favor of his wife, Cindy Adler.

Husband/Applicant moved both for leave to appeal from the trial court decision and to stay the Judge’s order. The Ontario Superior Court of Justice, Divisional Court, Nordheimer, J., granted the motion for leave to appeal, but restricted the appeal to whether Sec. 12 and Sec. 40 of the Family Law Act of 1990, which restrains the depletion of property and preserved property, empowered “the court to order the posting of a bond or letter of credit where the requirements for relief in the sections are otherwise met.” The Judge also granted the motion to stay until the appeal could be heard and ruled upon.

The Judge concluded that ordering Husband/Applicant to place a certificate of pending ligation on a particular property was within the scope of the applicable statutes, but ruled that ordering Husband/Applicant to post a bond or letter of credit was not contemplated by the Family Law Act. The Judge reasoned that an order requiring a bond or letter of credit resulted in the creation of a new asset, rather than pertaining to existing property, which was outside of the boundaries of the Family Law Act.

[JWC]

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