In Hockney v. Kneeland, 2025 ONSC 3592, the Ontario Superior Court issued a scathing decision against a lawyer who acted as estate trustee and failed to distribute inheritance funds to seven grandchildren of the deceased.

Justice Myers found that Mary Jane Kneeland, in both her personal and fiduciary capacities, committed serious breaches of trust and fiduciary duty, engaged in tortious conversion of estate funds, and was unjustly enriched. Despite repeated court directions and clear notice, the defendant failed to defend the action or explain her conduct.

The estate was worth approximately $251,571.89. While $105,000 was distributed in 2017, the balance—$146,571.89—was never paid out. Each beneficiary was entitled to $20,938.84, yet years passed without any explanation or action from the trustee.

The Court found that the conduct amounted not only to fiduciary misconduct but to civil theft. Myers J. emphasized that the wrong was compounded by the defendant’s status as a lawyer, stating that she had “repeatedly ignore[d] her duties to people who thought they could rely on her professionalism.”

The Court awarded the plaintiffs the balance of the estate funds, aggravated damages of $8,000 per plaintiff for distress, and prejudgment interest dating back to 2017. Additional damages for lost housing opportunities, missed education, and medical costs were claimed but not awarded due to the speculative nature of the evidence. However, Justice Myers left the door open for further submissions on these heads of damage should better evidence be produced.

Based on the judgment in Hockney v. Kneeland, 2025 ONSC 3592, the total amounts awarded are as follows:

  • Unpaid inheritance: $146,571.89

  • Aggravated damages: $56,000 ($8,000 × 7 plaintiffs)

  • Costs (substantial indemnity): $15,000

  • Prejudgment interest: To be calculated under the Courts of Justice Act from May 8, 2017, on $146,571.89 (not specified in the decision but to be included in the final judgment)

Total (excluding interest): $217,571.89

This case is a clear warning to estate trustees, particularly lawyers, that courts will not hesitate to impose personal liability for egregious misconduct. The ruling reinforces the seriousness of fiduciary obligations and the importance of transparency and diligence in estate administration.

At Bobila Walker Law, we represent beneficiaries and fiduciaries in complex estate disputes with professionalism and results. Contact us at 416-847-1859 or info@bobilawalkerlaw.com.