What is the test for undue influence in the context of the transfer of assets?

Ontario, Canada


The following excerpt is from Hutchison v. Hutchison, 2006 CanLII 27233 (ON SC):

Dealing with the transfer of the assets, the plaintiffs allege that the deceased acted as a result of undue influence exercised by the defendants. In Geffen v. Goodman Estate, 1991 CanLII 69 (SCC), [1991] 2 S.C.R. 353, Wilson J. said at page 378: What then must a plaintiff establish in order to trigger a presumption of undue influence? In my view, the inquiry should begin with an examination of the relationship between the parties. The first question to be addressed in all cases is whether the potential for domination inheres in the nature of the relationship itself. This test embraces those relationships which equity has already recognized as giving rise to the presumption, such as solicitor and client, parent and child and guardian and ward as well as other relationships of dependency which defy easy categorization. Having established the requisite type of relationship to support the presumption, the next phase of the inquiry involves an examination of the nature of the transaction. In situations where consideration is not an issue, e.g., gifts and bequests, it seems to me quite inappropriate to put a plaintiff to the proof of undue disadvantage or benefit in the result. In these situations the concern of the court is that such acts of beneficence not be tainted. It is enough, therefore to establish the presence of a dominant relationship.

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