2012 QCCQ 3985, 2012 QCCQ 3985

Racine & Chamberland inc. c. 9133-3351 Québec inc. 2012 QCCQ 3985 COURT OF QUÉBEC Small Claims Division CANADA PROVINCE OF QUÉBEC DISTRICT OF MONTRÉAL Civil Division No: 500-32-109562-084 DATE: May 11, 2012 ______________________________________________________________________ PRESIDED BY THE HONOURABLE HENRI RICHARD, J.C.Q. ______________________________________________________________________ RACINE & CHAMBERLAND INC.

Plaintiff v. 9133-3351 QUÉBEC INC. and ANGELOS (EVANGELOS) MICHALOPOULOS Defendants ______________________________________________________________________ JUDGMENT ______________________________________________________________________ [ 1 ] Racine & Chamberland Inc. (" RCI "), an insurance firm, claims from 9133-3351 Québec Inc. (" Québec Inc .") and Angelos Michalopoulos $6,101.67 as unpaid premiums. [ 2 ] Québec Inc. did not contest RCI's claim. [ 3 ] On his part, Mr Michalopoulos contests the amount claimed and alleges the uselessness of an insurance policy issued for the benefit of Québec Inc. in the amount of $5,000, plus the applicable taxes.

Questions in dispute [ 4 ]

a) Is the promissory note signed by Mr Michalopoulos on March 1, 2007, sufficient to support RCI's claim ?

b) What sums of money are owed by Québec Inc. and Mr Michalopoulos as unpaid premiums ?

c) Does the issuance of post-dated cheques by Mr Michalopoulos to pay the outstanding balance to RCI constitute an acknowledgment of debt ?

The facts and analysis [ 5 ] Mr Michalopoulos is a long-time client of RCI through whom several insurance policies were issued either for his personal benefit or for Québec Inc. [ 6 ] As of the end of February 2007, Québec Inc. owes to RCI $9,176.22 as unpaid premiums. [ 7 ] This being the case, on March 1, 2007, Mr Michalopoulos signs a promissory note by which he promises to pay to RCI, upon demand, $9,176.22. [ 8 ] The statement of account P-9 establishes an outstanding balance of $6,101,67, claimed in the present instance.

This amount includes the outstanding due by Mr Michalopoulos for policies issued at his request and for Québec Inc.'s policies. [ 9 ] Because Québec Inc. ceases its operations, an agreement intervenes between Mr Michalopoulos and RCI for the payment of the balance due by 12 monthly post-dated cheques, beginning on March 20, 2007.

This agreement leads to the signature by Mr Michalopoulos of the said promissory note in favour of RCI. [ 10 ] The cheques of March and April 2007 are duly cashed and five others are returned for insufficient funds. [ 11 ] At the trial, Mr Michalopoulos presents four cheques allegedly not taken into account by RCI in its calculation.

[ 12 ] After the trial, RCI's representative, Mr Tony Di Corpo, submits to the Court documents showing that the alleged payments made by Québec Inc. in 2005 and 2006 were considered in the payment of the corresponding premiums. [ 13 ] Thus, the Court concludes that the amount claimed of $6,101.67 is undisputable. [ 14 ] The purpose of having Mr Michalopoulos sign the promissory note on March 1, 2007 follows his representations that Québec Inc. cease its operations and he accepts to be personally indebted towards RCI for the amount then due of $9,176.22, payable on demand. [ 15 ] Moreover, it is useful to remember that the payment of an obligation or a debt by cheque bears legal consequences.

In application of

Article 129 of the Bills of Exchange Act , R.S.C., 1985, c. B-4, a payment by cheque constitutes an acknowledgement of debt: " 129. The drawer of a bill by drawing it (

a) engages that on due presentment it shall be accepted and paid according to its tenor, and that if it is dishonoured he will compensate the holder or any endorser who is compelled to pay it, if the requisite proceedings on dishonour are duly taken; and (

b) is precluded from denying to a holder in due course the existence of the payee and his then capacity to endorse." [ 16 ] In other words, by issuing a cheque, a person recognizes owing the amount drawn on the cheque. [ 17 ] As for Mr Michalopoulos' argument related to the uselessness of the issuance of a commercial insurance policy for Québec Inc., the Court finds no evidence in its support. [ 18 ] Given all of the above, the Court concludes that RCI establish the merit of its claim and that Mr. Michalopoulos' grounds of contestation are ill-founded both in fact and in law.

THEREFORE, the Court: GRANTS Racine & Chamberland Inc.'s claim; CONDEMNS solidarily 9133-3351 Québec Inc. and Angelos (Evangelos) Michalopoulos to pay to Racine & Chamberland Inc. $6,101.67 with interest at the annual rate of 5 % and the additional indemnity provided for under

Article 1619 of the Civil Code of Québec , as from January 30, 2008; CONDEMNS solidarily 9133-3351 Québec Inc. and Angelos (Evangelos) Michalopoulos to pay to Racine & Chamberland Inc. $128 as judicial fees. __________________________________ Henri Richard, J.C.Q. Date of hearing: April 30, 2012