Court File No. CV-18-606163-00CL ONTARIO
SUPERIOR COURT OF JUSTICE (COMMERCIAL LIST) B E T W E E N: FRANK STRONACH and ELFRIEDE STRONACH Plaintiffs - and BELINDA STRONACH IN HER PERSONAL CAPACITY AND IN HER CAPACITY AS TRUSTEE OF THE BELINDA STRONACH 445 FAMILY TRUST, THE ANDREW STRONACH 445 FAMILY TRUST AND THE 445327 TRUST; ALON OSSIP IN HIS PERSONAL CAPACITY AND IN HIS CAPACITY AS TRUSTEE OF THE ANDREW STRONACH 445 FAMILY TRUST AND THE 445327 445 327 TRUST; FRANK WALKER IN HIS CAPACITY AS TRUSTEE OF THE BELINDA STRONACH 445 FAMILY TRUST AND THE ANDREW STRONACH 445 FAMILY TRUST; NICOLE N ICOLE WALKER IN HER CAPACITY AS TRUSTEE OF THE BELINDA STRONACH 445 FAMILY TRUST AND THE ANDREW STRONACH 445 FAMILY TRUST; and STRONACH CONSULTING CORP. Defendants
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Introduction 4.
Alon is a long-standing employee, executive, shareholder, director and trustee within The
Stronach Group (defined below), in which capacities he has worked tirelessly to create value for the Stronach family. He worked for years alongside Frank Stronach (“Frank”) and Frank’s daughter Belinda Stronach (“Belinda”) to help them grow The Stronach Group into a thriving commercial enterprise. At all times, Alon has discharged his fiduciary and other duties to the various trusts, companies and their stakeholders, all of whom have benefited tremendously from both his business acumen and his steadfast loyalty. 5.
Frank was, in his day, a giant of Canadian business, and Alon has tremendous respect for
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-3accordingly, such that it was not necessary to strictly enforce the lines of corporate decisionmaking. Over time, however, Frank began to view Alon’s interventions as a personal affront, with the result that his relationship with Alon ultimately deteriorated. So too did Frank’s relationship with others in The Stronach Group, including his daughter, resulting in a breakdown of Frank’s personal and professional ties. 8.
It is against this backdrop that Alon now finds himself caught in the crossfire of a toxic
familial dispute. The statement of claim in this action contains deliberate falsehoods and unsubstantiated allegations of wrongdoing, pleaded in a bad faith effort to publicly injure the defendants, particularly Alon.
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-411.
The Stronach Group consists of a complex network of trusts, corporations and other o ther entities
which, collectively, comprise the businesses and assets of the Stronach family. As described more fully below, Alon has been instrumental in developing these commercial and other interests. Alon and his related family trust are also 5% shareholders in 2382399 Ontario Limited and 2280781 Ontario Inc. (holding companies which own a substantial portion of the assets included in The Stronach Group). 12.
Alon is a trustee of the 445327 Trust and the Andrew Stronach 445 Family Trust T rust – positions
he assumed in or about October 2013 at the request of Frank and other members of the Stronach family.
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-5 business operations, and was known to champion his clients’ interests with loyalty and integrity. Alon’s business acumen, diligent work ethic and entrepreneurial aptitude garnered him – and others – tremendous financial success.
Alon’s Early Relationship with Frank 15.
In or about August 2006, Alon was approached by Frank – with whom he had no prior
relationship – seeking advice with respect to a discrete tax issue. Frank offered Alon a position as an Executive Vice President at Magna, and offered to teach him the business. Alon indicated that he needed time to consider the offer.
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-618.
Alon was instrumental in a number of Magna’s most significant corporate transactions
during that period, including the 2007 transaction involving Russian Machines and the 2010 transaction that eliminated Magna’s dual-class share structure by way of a court-approved plan of arrangement in which the Stronach family received the equivalent of approximately US$863 million for its controlling interest in Magna. 19.
Thereafter – at Frank’s request – Alon developed, dev eloped, structured, negotiated and implemented
a further corporate transaction in respect of MI Developments Inc. (“MID”). Prior attempts by others to solve the issues that surrounded MID, which was fraught with litigation, had failed. The transaction proposed and ultimately implemented by Alon netted the Stronach family all of MID’s
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Alon’s Role as CEO of The Stronach Group 21.
Immediately after the signing of the definitive agreements concerning the MID transaction,
Alon started effectively directing the operations of the soon-to-be spun out assets. On the closing of the MID transaction at the end of June 2011, Alon became an Executive Vice President of The Stronach Group. At the time, The Stronach Group had no meaningful management structure in
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-8One of Alon’s first initiatives as CEO was to immerse himself in the portfolios and to conduct a thorough review of The Stronach Group’s holdings, including its extremely complex R&G Business. In this regard, he consulted with Frank and others – both within and outside of the organization – in an attempt to understand the issues surrounding the non -performing industry and assets. Over time Alon developed an understanding of the business such that he could start making
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-9remains – the parent corporation of all of the Stronach entities that hold the assets arising from the disposition of the Magna control shares and the MID transaction. 29.
In addition, Belinda (in her personal capacity) was a party to a unanimous shareholders
agreement with 445327 Ontario Limited, which provided that Belinda was the sole director of
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- 10 33.
In early 2014, Frank’s short-lived and disastrous political career – which ultimately cost in
excess of US$47 million, gave rise to an expansive tax audit and injured the corporate brand – came to an end. Thereafter, his pursuit of his passion projects continued with greater intensity. While Belinda was the ultimate decision-maker for The Stronach Group, Frank was the head of the Stronach family. The Stronach Group executives and advisors – including Alon – accorded
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- 11 (i)
Medical Devices
~ US$1,900,000
(j)
Business Aviation
~ US$2,600,000
(k)
Pegasus Statues
~ US$55,000,000
(l)
Florida Restaurants
~US$29,000,000
(m)
Art Gallery
~US$2,200,000
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