Dien v Willisko, 2021 ABQB 506

Court of Queen’s Bench of Alberta Citation: Dien v Willisko, 2021 ABQB 506 Date: 20210630 Docket: 2003 15936 Registry: Edmonton Between: Liana Dien Applicant - and - Chad Emerson Willisko Respondent _______________________________________________________ Endorsement of the Honourable Mr. Justice M. J. Lema _______________________________________________________ A.

Introduction [ 1 ] A former landlord seeks a contempt finding against her former tenant for insufficient judgment-debtor disclosure. [ 2 ] The former tenant asserts adequate disclosure. [ 3 ] I find that the initial disclosure order should be varied, that additional disclosure is required, that a new compliance deadline is necessary, and that no contempt finding is warranted at this stage.

B. Background [ 4 ] Ms. Dien (the former landlord) sought the initial disclosure order from Friesen J. in response to Mr. Willisko’s Financial Statement of Debtor sworn January 23 (or 28), 2021. [ 5 ] Friesen J. directed Mr. Willisko (the former tenant) to provide “a complete Financial Statement of Accounts which will include any personal bank accounts, tax returns, with respect to [his] Corporation and financial records relating to the Corporation ... [by] March 19, 2021”. [ 6 ] On April 19, 2021, Mr.

Willisko filed an affidavit sworn that date stating (in part) that he did not have, and could not afford to arrange for the preparation of, tax returns for 2018, 2019 or 2020 and that “On the matter of a personal bank account, I only have one account and that account belongs to Solstice Welding CE Ltd”, and that “In 2005, upon the advice from my accountant, I amalgamated my business account with my personal account under the corporate banner of [Solstice] and have operated as such ever since. This was recommended as a business practice for my type of business.

This status was previously revealed in Virtual Courtroom 50 ... in front of ... [Justice Friesen]”. [ 7 ] Ms. Dien regards that response as insufficient disclosure i.e. in light of Friesen J.’s specific order as to “personal bank accounts”, “tax returns”, and “financial records relating to [Solstice]”. [ 8 ] Mr. Willisko regards his disclosure as sufficient. C. Analysis and directions [ 9 ] I have reviewed Mr. Willisko’s January 2021 Financial Statement of Debtor, Friesen J.’s order, Ms. Dien’s application, and Mr. Willisko’s April 2021 affidavit. [ 10 ] Given that Ms.

Dien’s unconditional order (of the RTDRS) granted October 22, 2020 and associated writ of enforcement (filed January 19, 2021) is against Mr. Willisko personally i.e. not against Solstice, and since Ms. Dien accordingly has no claim against any of Solstice’s assets (subject to the bank account discussed further below), instead only against Mr. Willisko’s shares in Solstice, I am prepared to, and do hereby, vary Friesen J.’s order for disclosure of tax returns and financial statements as they relate to Solstice i.e. to delete that obligation. [ 11 ] Mr.

Willisko is still obliged, under the Friesen J. order, which I hereby confirm, to produce his personal tax returns for 2018, 2019 and 2020 i.e. to prepare them, file them with the Canada Revenue Agency, and to provide copies of the filed returns to Ms. Dien. Whether or not Mr.

Willisko is unable to pay for the preparation of corporate financial returns or financial statements (i.e. to pay for accountants to prepare these materials), he should be able to, and I proceed on the basis that he shall, prepare and file his personal tax returns and so be able to comply with this “prepare, file and serve” order. [ 12 ] I also order that Mr. Willisko also provide Ms. Dien with copies of his notices of assessment from CRA i.e. once those returns are assessed by CRA. [ 13 ] As for Mr.

Willisko swearing that he has no personal bank account (having “amalgamated” his personal account with Solstice’s bank account), that intermixture of his personal and corporate affairs does not have the effect of immunizing his personal funds from collection action by personal creditors such as Ms. Dien. As well, it does not have the effect of neutralizing Friesen J.’s order that provide personal bank account information. [ 14 ] I reiterate Friesen J.’s order for disclosure of “personal bank accounts”, and expand that order (given the intermixing of accounts here) to require Mr. Willisko provide Ms.

Dien with the name of his financial institution (i.e. where the Solstice account is), the account number, the current balance in the account, and copies of account statements for the last twelve months. [ 15 ] I amend the disclosure deadline provided by Friesen J. (March 19, 2021) as follows: bank-related information to be provided by July 31, 2021, and tax-related information to be provided to Ms. Dien by August 31, 2021 (with notices of assessment to be provided within 15 days of receipt by Mr. Willisko). [ 16 ] If Mr. Willisko misses either deadline, Ms.

Dien can apply to me to have him held in contempt. [ 17 ] I am seizing myself with all further applications on this file. [ 18 ] I make the same service order as Friesen J. i.e. service of the formal order reflecting these directions shall be accomplished by email. [ 19 ] As for Mr. Willisko’s action against Ms. Dien and Mr. Minty (2003 11978), my understanding is that Mr. Willisko’s claim (of $1,875) was paid out via garnishment proceeds on or about May 11, 2021 i.e. he has no further claim remaining on that front. [ 20 ] Of course, if Mr. Willisko decides to pay the amount outstanding on Ms.

Dien’s judgment ($3,968 when initially granted), he will not have to provide the ordered disclosure. [ 21 ] I direct that QB Information Services prepare an order for my signature, reflecting these various directions, which will be sent out to both parties. However, my directions take effect immediately i.e. even in advance of preparation, signing and circulation of the formal order.

Dated at the City of Edmonton, Alberta this 30 th day of June, 2021. M. J. Lema J.C.Q.B.A. Appearances: Liana Dien for the Self-Represented Litigant Chad Emerson Willisko for the Self-Represented Litigant