The claim alleges (not proven in Court etc) that Doug Ford suggested to Rob Ford's widow, Renata, that they resolve estate matters without lawyers. Always the first clue something is amiss.
The claim goes on to accuse Doug Ford of failing to distribute the property of Rob Ford's estate. Rob Ford has been dead for over two years. The claim also alleges that Doug Ford has not "passed the accounts" ( which means have the estate accounts approved by a court).
While you don't always have to get the estate accounts approved by the court, it is required where there are minor beneficiaries which there are in this case (Rob's kids). Doug also agreed in October 2016 to provide complete information to Ford's widow re Rob Ford's estate.
Doug, as Rob's estate trustee, is then alleged to have sold Rob's 200 Deco shares to Randy (the other brother) for a dollar. Doug and Randy then reorganized the Deco companies so that Rob's estate had no further interest in the Deco companies.
The claim further alleges that Doug and Randy then mismanaged the affairs of the Deco companies. So much for Doug's reputation as a great businessman! The claim alleges Deco Toronto lost millions of dollars since 2010.
The claim says Doug's compensation and perks were "extravagant" and that Doug had neither the education or experience to justify employment as a senior officer of the Deco companies. The claim says that Doug continued to draw extravagant compensation when he was a politician.
The claim alleges that Doug and Randy destroyed the value of the Deco companies and grossly overcompensated themselves. They hired friends and family members who weren't qualified. They failed to operate the businesses which maintained costs and expenses commensurate with revenue.
Doug dismissed competent employees and caused the businesses to pay for Doug and Randy's personal expenses. In order to maintain the solvency of the Deco companies the claim alleges they arranged for infusions of funds from their father's estate.
The claim asserts that the father's estate was worth between 15 and 20 million in 2007 but by august 2014 was worth 6.4 million and now its alleged to be worth even less. So the claim alleges that because Doug breached his trustee obligations to Rob's kids, they have lost $5 mil.
Doug is then alleged to have withheld the proceeds of Rob's life insurance, charged unreasonable expenses to the estate and attempted to keep his misconduct secret.
The claim then says that Doug's and Randy's mismanagement and negligent direction of the Deco companies has resulted in those companies "total operational failure" . The claim also seeks punitive damages against Doug and Randy. Here is a quote from the last paragraph.
"The defendant's misconduct was calculated, in breach of their trustees' duties, concealed by them, and arose in the context of multiple conflicts of interest which they willingly embraced to benefit themselves. In effect the defendants mismanaged the Deco Companies to the point of insolvency, and then plundered Doug Sr.'s estate to maintain the illusion that they were successful businessmen and to retain their offices and compensation."
So a few observations. The lawyers and the law firm acting for Rob Ford's widow and kids are reputable. They aren't the type of lawyers you see on the Simpsons. The claim is well drafted and credibly presented.
The facts as pleaded are all too common in the sense that the persons operating the business attempt to edge out the unsophisticated shareholder. Also common is the failure of estate trustees to produce credible and timely information when asked. Often the first sign of trouble.
