Lauzon v Lauzon, 2011 ABQB 454

Court of Queen ’ s Bench of Alberta Citation: Lauzon v Lauzon, 2011 ABQB 454 Date: 20110712 Docket: 4803 156728 Registry: Edmonton Between: Suzanne Lee Lauzon Plaintiff - and - Ronald Nelson Lauzon Defendant _______________________________________________________ Reasons for Judgment of the Honourable Mr. Justice Donald Lee _______________________________________________________ [ 1 ] This is an application by the wife to freeze a series of bank accounts; to receive retroactive spousal support at the rate of $12,000 a month; and to obtain interim costs of $25,000 payable immediately.

There are three adult children, two of whom are completely independent. The one adult daughter still lives at home with the wife, and is not employed. [ 2 ] The husband owns one hundred percent of Northgate Transmission Centre Ltd. and Southside Transmission Ltd., as well as fifty percent in 1215089 Alberta Ltd. which operates Parts IV Automatic Transmissions - Deborah Schlamp is the other fifty percent owner. The Defendant’s brother Cody Lauzon operates the Northgate Transmission Centre, while a son, Joshua Lauzon operates the Southside Transmission store. The husband has a manager who operates the parts shop.

[ 3 ] The wife deposes that she was the bookkeeper for the Northgate store and the Southside store essentially since they began to cohabit in 1984.

Until recently she was paid $6,000 a month to be the bookkeeper, but the husband has now hired a new bookkeeper to replace her, he says at the same costs, and he refuses to pay the wife any further salary from the businesses. [ 4 ] The wife alleges that the husband has been dissipating large amounts of funds, and additionally that he is a professional poker player and gambling addict who has hidden his winnings and earnings from her. [ 5 ] Shortly after these parties separated on January 11, 2011 the husband is alleged to have removed $150,000 from the parties’ joint account at the Bank of Nova Scotia to prevent the wife from “stealing it”.

In order to preserve the remaining funds in some of the bank accounts, the wife acknowledges transferring approximately $28,500 into an account in her own name. [ 6 ] The wife also alleges that $400,000 that they received from the sale of investment residence in Surrey, British Columbia was supposed to have been deposited into a new joint account, but following their separation she discovered that the husband had deposited the monies into his own account.

She also deposes that the husband had $269,000 in a U.S. savings account based on the bank statement dated March 31, 2010, but following the separation she discovered a bank statement dated December 31, 2010 which disclosed that the U.S. savings account only had $196,000 left in it. [ 7 ] The wife deposes that she has questioned the husband about where these funds in the bank accounts presently are, but has been told that it was “none of her business”. [ 8 ] The wife deposes that their eldest son also recently informed her that he “owes his father a great debt of money”, however once again it was considered to be “none of her business”.

The eldest son and the husband have a joint bank account, and the husband has recently been writing himself various large cheques without explanation from Northgate Transmission. [ 9 ] What the wife suspects is that the husband has been using all or part of these large sums of money to feed his poker playing addiction as he attends at casinos according to her virtually every night.

The husband only acknowledges requiring $100,000 U.S. to play in the World Series of Poker Tournament in Las Vegas where he is presently. [ 10 ] The wife seeks a Preservation/Freezing Order against all of the husband’s assets in order to insure that he does not waste or expend further matrimonial funds on his poker addiction, and to prevent dissipation of the parties’ matrimonial property. [ 11 ] The husband denies any addiction to poker, and deposes that the wife is very conversant with his participation in the World Series of Poker Tournament.

He says that the other monies withdrawn were simply transferred into longer term investments to pay more interest, or the withdrawn funds have been returned to the accounts. [ 12 ] The husband deposes that if he had not purchased GICs with the various amounts of money to preserve the matrimonial assets, it would have been the wife who would have likely dissipated the money by taking unnecessary trips. [ 13 ] The husband deposes the wife is in the habit of making numerous trips out of the City and spending great amounts of money unnecessarily.

The wife is alleged to have made six trips to other Provinces in Canada, and into the U.S.A. in the last five months. When asked about the details of these trips, the wife allegedly gives no answer. The details of these apparent trips by the wife are as follows:– (

a) Trip to Vancouver from June 17, 2011 to June 22, 2011 (

b) Trip to Los Angeles and Anaheim from May 17, 2011 to May 25, 2011 (

c) Trip to Las Vegas from May 2, 2011 to May 6, 2011 (

d) Trip to Vancouver from April 7, 2011 to April 13, 2011

(

e) Trip to Vancouver from March 12, 2011 to March 18, 2011 (

f) Trip to Vancouver from February 5, 2011 to February 9, 2011. [ 14 ] The husband submits that there is no need for a Preservation/Freezing Order against his assets. He plays poker just as an ordinary player, and he denies any addiction to poker or any other form of gambling. Preservation/Freezing Order Against the Husband’s Assets - Conclusion [ 15 ] It appears from the Affidavits filed by both parties that each party spends a great deal of money, and that they both live very good lifestyles with lots of money available to both parties.

Without adjudicating on the various allegations and disputed evidence, I believe it is in both parties’ interest that there be a Preservation/Freezing Order on the husband’s accounts. This is in part because it does not appear that the husband really needs access to these accounts in any event with the possible exception of the U.S. dollar account.

The U.S. dollar account however appears to be largely connected to the World Series of Poker Tournament, which is a gambling tournament that the husband is presently involved in, and limiting his access to funds for that purpose is reasonable. [ 16 ] A Preservation/Freezing Order will also give the parties an opportunity to catch up to the various transactions that appear to have been going on in numerous accounts, while at the same time preserving large amounts of capital without unduly hindering either party.

Interim Spousal Support [ 17 ] The wife seeks interim spousal support of $12,000 a month payable retroactive to June 1, 2011 when the wife was no longer paid to be the bookkeeper for the two transmission businesses at the rate of $6,000 a month. The wife lives in the former matrimonial home which she has sole possession of, and which is valued for property tax purposes at over $900,000.

Her budget which is marked as Exhibit “K” to her Affidavit sworn June 9, 2011 totals just over $12,000 a month or approximately $145,000 a year and reads as follows:– Monthly Budget of Expenses ( please ignore inapplicable categories or expenses)

Category A - Housing and Lodging Rent Mortgage Payments Property Tax Property Insurance Condominium Fees Electricity Heating Water and Sewer Repairs and Maintenance Handyman Total $ $ $ 525.00 $ 170.00 $ $ 240.00 $ 220.00 $ 180.00 $ 175.00 $ 50.00 $1,560.00 Category B - Household Expenses Food Supplies Laundry and Dry Cleaning Telephone Cable TV Internet Fees Cell Phone Fees Furniture Repairs and Replacement Cleaning Expenses Gardening/Irrigation/Snow Removal Dog Expenses Culligan Spring Water Total $ 600.00 $ 150.00 $ 25.00 $ 85.00 $ 90.00 $ 135.00 $ 150.00 $ 120.00 $ 500.00 $ 200.00 $ 100.00 $ 30.00 $2,185.00

Category C - Transportation Auto Insurance License and Registration Gas and Oil Parking Auto Servicing Public Transit and Taxis Other (Specify) Total $ 100.00 $ 10.00 $ 550.00 $ 10.00 $ 100.00 $ $ $ 770.00 Category D - Yourself - Direct Expenses Clothing/Shoes/Purses Hairdresser/Personal Hygiene/Massages Toiletries/Cosmetics Entertainment/Recreation Pocket Money Crafts and Hobbies Birthdays, Christmas and gifts Restaurants Vacation Reserve Prescriptions and Medicines Orthodontist Life Insurance Premiums Group Insurance Support for Others Oilers Season Tickets Counselling Total $ 450.00 $ 450.00 $ 150.00 $ 500.00 $ 500.00 $ 50.00 $ 500.00 $ 450.00 $1,750.00 $ 25.00 $ $ $ $ $ 700.00 $ 100.00 $5,625.00

Category E - Children - Direct Expenses Clothing Hairdresser/Barber Entertainment/Activities Restaurants Food Children ’ s Allowance Birthdays, Christmas and gifts Vacation Reserve Education Savings Plan Insurance Babysitter Toys & Books School Lunches Daycare Tuition Educational Expenses (Specify) Counselling Orthodontistry Prescriptions/Medicines ( After Insurance Reimbursement ) Library Fees Rec Pass (both) Total $ 400.00 $ 200.00 $ 100.00 $ 100.00 $ $ $ 40.00 $ 300.00 $ $ $ $ $ $ $ $ $ 100.00 $ $ 93.00 $ $ 73.00 $1,406.00 Category F - Medical/Dental Medical Insurance Medical Payments Not Covered Dental Insurance Dental Payments Not Covered Optometry Chiropractor Vitamins/Herbs Hormone Lotion Total $ 93.00 $ $ $ $ 30.00 $ 40.00 $ 100.00 $ 50.00 $ 328.00

Category G - Miscellaneous Newspapers and Magazines Cigarettes Liquor Charities Legal Fees Bank and Credit Card Service Charges Financial Planning Fees Total $ 30.00 $ $ 20.00 $ 25.00 $ $ 15.00 $ 100.00 $ 190.00 Category H - Debt Payments/Other Credit Card Payments Bank Loan Payments Car Payments Total $ $ $ $

Summary Monthly Housing and Lodging $ 1,560.00 Household Expenses $ 2,185.00 Transportation $ 700.00 Yourself - Direct Expenses $ 5,625.00 Children - Direct Expenses $ 1,406.00 Medical/Dental $ 328.00 Miscellaneous $ 190.00 Debt Payments $ Total $12,064.00 Annual $ 18,720.00 $ 26,220.00 $ 9,240.00 $ 67,500.00 $ 16,872.00 $ 3,936.00 $ 2,280.00 $ $144,768.00 [ 18 ] The wife submits then that she requires $12,000 in spousal support each month to maintain her lifestyle and budget. It should be noted that these parties have three children all in their 20's, but the youngest child is an Edmonton Eskimo Cheerleader who lives at

home with the mother and apparently has no other source of income. [ 19 ] The husband opposes paying $12,000 a month spousal support to maintain this extravagant lifestyle. The husband also points out that the wife received a brand new Lexus valued at approximately $60,000 at the end of April 2010, and that the wife is simply incapable of maintaining herself. The husband submits that the wife is in good health and fully able to generate the $6,000 monthly income that she was earning from the Transmission businesses based on her accounting skill alone.

The husband submits that the wife simply wastes money and time on her unnecessary monthly trips. [ 20 ] This is however a long term marriage of over 25 years. Other than working as a bookkeeper for the Transmission business(es) since 1984, the wife has not worked for an arms length employer.

The Spousal Advisory Support Guidelines suggest an amount of between $10,211 and $13,472 per month, given the husband’s annual $326,755 Guideline income. [ 21 ] The husband points out that the wife is living in the former matrimonial home in Sherwood Park valued at over $900,000 while he has paid rent of $2,500 a month for his accommodation.

He has also provided the Court with his monthly budget of expenses which total ironically approximately $12,000 a month or $142,000 a year which reads as follows:– Monthly Budget of Expenses Category A - Housing and Lodging Rent Mortgage Payments Property Tax Property Insurance Condominium Fees Electricity Heating Water and Sewer Repairs and Maintenance Handyman Total $2,500.00 $ --- $ $ 170.00 $ $ 220.00 $ 200.00 $ 180.00 $ 1.00 $ 50.00 $3,470.00

Category B - Household Expenses Food Supplies Laundry and Dry Cleaning Telephone Cable TV Internet Fees Cleaning Expenses Gardening/Irrigation/Snow Removal Dog Expenses Culligan Spring Water Total $ 500.00 $ 150.00 $ 100.00 $ 100.00 $ 90.00 $ 80.00 $ 200.00 $ 200.00 $ 100.00 $ 25.00 $1,545.00 Category C - Transportation Auto Insurance License and Registration Gas and Oil Parking Auto Servicing Public Transit and Taxis Other (Specify) Total $ 100.00 $ 10.00 $ 250.00 $ 30.00 $ 100.00 $ $ $ 490.00

Category D - Yourself - Direct Expenses Clothing/Shoes/Purses Hairdresser/Personal Hygiene/Massages Entertainment/Recreation Pocket Money Birthdays, Christmas and gifts Restaurants Vacation Reserve Prescriptions and Medicines Orthodontist Life Insurance Premiums Group Insurance Support for Others Oilers Season Tickets Total $ 500.00 $ 200.00 $ 750.00 $ 750.00 $ 700.00 $ 400.00 $1,000.00 $ 50.00 $ $ $ $ 500.00 $ 600.00 $5,450.00

Category E - Children - Direct Expenses Clothing Hairdresser/Barber Entertainment/Activities Restaurants Food Children ’ s Allowance Birthdays, Christmas and gifts Education Savings Plan Insurance Babysitter Toys & Books School Lunches Daycare Tuition Educational Expenses (Specify) Counselling Orthodontistry Prescriptions/Medicines ( After Insurance Reimbursement ) Library Fees Rec Pass (both) Total $ 300.00 $ 80.00 $ 100.00 $ 100.00 $ $ $ 40.00 $ $ $ $ $ $ $ $ $ 100.00 $ $ 93.00 $ $ 73.00 $ 886.00 Category H - Debt Payments/Other Credit Card Payments Bank Loan Payments Car Payments Total $ $ $ $

Summary Monthly Housing and Lodging $ 3,470.00 Household Expenses $ 1,545.00 Transportation $ 490.00 Yourself - Direct Expenses $ 5,450.00 Children - Direct Expenses $ 886.00 Debt Payments $ Total $11,841.00 Annual $ 41,640.00 $ 18,540.00 $ 5,880.00 $ 65,400.00 $ 10,632.00 $ $142,092.00 Interim Spousal Support - Conclusion [ 22 ] The Spousal Support Guidelines suggest that the $12,000 a month requested by the wife is reasonable for a 25 year relationship where the wife is still only 47 and the husband is only 52 years of age, and where the husband makes an annual salary from employment of $326,755. [ 23 ] It is difficult even on an Interim Spousal Support Order to attempt to go through the many line items contained in both parties’ budgets.

Full disclosure has not been made as of yet, and there has been no examination on the Affidavits.

The wife however submits that she is in a dire financial situation having been cutoff of her monthly $6,000 salary, and having to pay all household expenses in the former matrimonial home even though she does not have to pay any rent. [ 24 ] On an interim interim basis the easiest solution is to simply require the husband to reinstate the wife’s $6,000 a month salary in the form of spousal support, plus to have him to pay for all household expenses directly related to the former matrimonial home retroactive to June 1, 2011. [ 25 ] To be specific based on the wife’s monthly budget of expenses, the husband is responsible for paying $6,000 which effectively replaces the salary the wife was receiving in any event, PLUS the following Category A Housing and Lodging, and Category B Household Expenses with the exception of the wife’s $600 monthly food expense which I deem as personal:–

Category A - Housing and Lodging Rent Mortgage Payments Property Tax Property Insurance Condominium Fees Electricity Heating Water and Sewer Repairs and Maintenance Handyman Total $ $ $ 525.00 $ 170.00 $ $ 240.00 $ 220.00 $ 180.00 $ 175.00 $ 50.00 $1,560.00 Category B - Household Expenses Supplies Laundry and Dry Cleaning Telephone Cable TV Internet Fees Cell Phone Fees Furniture Repairs and Replacement Cleaning Expenses Gardening/Irrigation/Snow Removal Dog Expenses Culligan Spring Water Total **$600 Food Amount Removed From Husband ’ s Responsibility $ 150.00 $ 25.00 $ 85.00 $ 90.00 $ 135.00 $ 150.00 $ 120.00 $ 500.00 $ 200.00 $ 100.00 $ 30.00 $1,585.00 [ 26 ] Accordingly the sum of $1,560 of Category A Housing and Lodging Expenses, and the sum of $1,585 Category B Household Expenses [from which food has been removed] will be paid by the husband in addition to the $6,000 a month in interim spousal support for a total Interim Spousal Support payment of $9,145. [ 27 ] All other items on the wife’s monthly budget which totals $12,000 will be at her personal expense.

Interim Costs of $25,000 [ 28 ] The husband opposes any interim costs application submitting that the wife has ample funds available to her to fund the valuations of his businesses.

He deposes that the wife has withdrawn/transferred the following large amounts in the last few months:– May 12, 2011 $ 2,000 April 26, 2011 $28,500 April 21, 2011 $20,000 March 21, 2011 $ 8,000 Savings Bonds $10,000 Savings Bonds $ 5,000. [ 29 ] The only reason the wife may be financially strapped is because of the extravagant spending habits that she has according to the husband. [ 30 ] I conclude that the husband has interests in three corporations which operate automobile transmission businesses of a highly successful nature, as well as operating business relationships with his brother, and with their son.

The wife is no longer the bookkeeper for the businesses, and she is not aware about the day-to-day ongoing operations of those businesses. I conclude that she reasonably requires $25,000 to hire a business evaluator. [ 31 ] I conclude that it is not clear what money the wife has at this time available to her to fund the valuations, but that $25,000 in these circumstances to value three corporations operating automobile transmission businesses is not unreasonable.

Whether the wife’s present financial predicament is as a result of her extravagance, it is still necessary that she have the opportunity on this one time basis to fund valuations and to begin the process of settling the matrimonial property given the size and complexity of the matrimonial property involved in this case. [ 32 ] Accordingly there will be an immediate payment of interim costs in the sum of $25,000 by the husband to the wife. Heard on the 8 th day of July, 2011. Dated at the City of Edmonton, Alberta this 12 th day of July, 2011.

Donald Lee J.C.Q.B.A. Appearances: I. Thomas Colquhoun Colquhoun Law for the Plaintiff Martin G. Schultz Martin G. Schults & Associates for the Defendant