Introduction

Manjunath v. Kuppa was an uncontested trial after the court struck out the pleadings of Mr. Kuppa. Justice Ricchetti was left to address the parties’ remaining issues, all of which were financial. Ms. Manjunath sought equalization of the net family property and other financial claims which the court awarded her given Mr. Kuppa’s fraudulent conduct.

Background

The parties were married in 1992 before they immigrated to Canada. After immigrating, Mr. Kuppa was a real estate broker allowing the family to become very successful financially.

However, Mr. Kuppa was a controlling spouse who would not discuss the family’s finances with his wife, telling her that all their assets were his. Later, without any warning or consent, Mr. Kuppa prepared a separation agreement and told Ms. Manjunath to sign the agreement without ever telling her what it was. Mr. Kuppa lied in an Application for Divorce that the parties had separated and pressured Ms. Manjunath not to contest the Application. The parties had no discussion of disclosure or equalization, and Mr. Kuppa convinced Ms. Manjunath to move out of the matrimonial home “temporarily”. Mr. Kuppa then told Ms. Manjunath she could not move back into the matrimonial home unless she signed over her interest in the property, which she did with no consideration for doing so.

Analysis

The court at first considered how Ms. Manjunath willingly signed over her ownership of the home, signed the Separation Agreement, and did not contest the Application for Divorce. However, the court later emphasized that Ms. Manjunath was in a controlling and abusive environment, where her husband deliberately deprived her of any financial fruits that came from the family.

The first issue was the Separation Agreement. Here, Justice Ricchetti called the Separation Agreement a sham that was unconscionable. Ms. Manjunath did not have any independent legal advice, nor did she receive any explanation of what she was signing. Mr. Kuppa did not provide financial disclosure or provide Ms. Manjunath with any consideration for signing the Agreement. As a result, Justice Ricchetti declared the Separation Agreement null and void.

For similar reasons, Justice Ricchetti also declared the Application for Divorce void because the only reason Ms. Manjunath did not oppose the Application was because she was under duress. The Application for Divorce was part of Mr. Kuppa’s long-term plan to deprive Ms. Manjunath of the benefits of the family assets.

Regarding the matrimonial home, Justice Ricchetti likewise considered that Ms. Manjunath received no consideration for the transfer, and that the transfer was obtained using duress and fraudulent statements. As such, Justice Ricchetti ordered the matrimonial home to be an asset subject to equalization.

The next financial issue Justice Ricchetti addressed was equalization of the net family property. Given the circumstances, Justice Ricchetti determined that Ms. Manjunath’s net family property on the separation date was nothing. On the other hand, Mr. Kuppa owned several properties and a private mortgage lending business. As a result, the court determined that Mr. Kuppa owed Ms. Manjunath an equalization payment of almost $2 million.

The final financial issue considered by the court was spousal support. In his financial statement, Mr. Kuppa stated his income was $14,385 but reported annual expenses of $211,116. Mr. Kuppa failed to disclose his finances and transferred assets out of the jurisdiction meaning that the information was not known or available. An order by a previous judge uncovered that Mr. Kuppa’s annual spending ranged from $200,000 to $300,000. Based on this information, the court imputed an income to Mr. Kuppa of $455,000.

The court sided with Ms. Manjunath regarding all the financial issues. To ensure payment to Ms. Manjunath of what was owed, the court ultimately ordered Mr. Kuppa to pay support via a lump sum. The lump sum was deemed appropriate given the fraud and lengths Mr. Kuppa had gone to in the past to avoid paying Ms. Manjunath. This lump sum included payment for the matrimonial home, equalization and spousal support, as well as costs and punitive damages for Mr. Kuppa’s dishonest conduct.

Conclusion

Manjunath v. Kuppa is an example of the court taking a harsh stance towards parties who engage in fraudulent conduct. Mr. Kuppa failed to disclose his financial information, lied in his affidavits and lied in an Application for Divorce. He deliberately defrauded his wife out of benefits that came from the marriage including through an unconscionable separation agreement. As such, the court ordered Mr. Kuppa to pay back all the money that was rightfully owed to Ms. Manjunath, including punitive damages and her costs.