2017 QCCQ 15212, 2017 QCCQ 15212

Hanye c. Shafik 2017 QCCQ 15212 COURT OF QUEBEC Small Claims Division CANADA PROVINCE OF QUEBEC DISTRICT OF montreal Civil Division No: 500-32-154682-167 DATE: November 28, 2017 ______________________________________________________________________ BY THE HONOURABLE Catherine pilon, J.C.Q. ______________________________________________________________________ Rasla Hanye Plaintiff v.

Ayad Shafik Defendant ______________________________________________________________________ JUDGMENT RENDERED ON THE BENCH ______________________________________________________________________ [ 1 ] The Plaintiff claims $ 6,100 from the Defendant pursuant to a loan. [ 2 ] The Defendant contests this claim and denies owing any amount to the Plaintiff. [ 3 ] The Plaintiff and the Defendant were business partners and operated a restaurant in a shopping mall through their company, 9200- 4514 Quebec Inc. (“Quebec Inc.”). [ 4 ] Quebec Inc. contracted a loan with RBC for $ 52,500 on January 21, 2010.

Both the Plaintiff and the Defendant personally guaranteed this loan. [ 5 ] The shares of Quebec Inc. were sold in July 2010 and the restaurant was operated by other individuals. [ 6 ] The loan and the guarantees remained in place. [ 7 ] The new owners continued to pay the loan until November 2012 when they stopped their payments. Quebec Inc. filed for bankruptcy on December 17, 2012. [ 8 ] The Plaintiff was the sole personal guarantor under the lease with the shopping mall.

To reduce his losses, he decided to continue to operate the restaurant, under a new company, until the end of the lease in December 2013. [ 9 ] The balance outstanding of the loan in November 2012 was $ 22,750 which the Plaintiff as co-guarantor decided to repay in March 2013. The balance outstanding was at that point $ 22,270.40. [ 10 ] While they were still in business, the parties shared expenses on the basis of 66 % for the Plaintiff and 34 % for the Defendant. It was agreed that the Defendant would pay the Plaintiff 34% of $22,270.40 of the RBC loan, namely $7,425.

As there were amounts owing to the Defendant by the Plaintiff for invoices he had paid while the restaurant was still in business, an amount of $1,325 was subtracted, for a total amount owed by the Defendant to the Plaintiff of $6,100. [ 11 ] On March 21, 2013 the parties met at the offices of Me Edward Druker. The Defendant signed a document acknowledging receipt of a loan of $ 6,100 with yearly interest of 5%, and to be repaid on March 21, 2015. [ 12 ] The Defendant testified that this document was rather signed in May 2015. However, Me Druker testified that he witnessed Mr.

Ayad’s signature and that the date is accurate. In addition the evidence shows that the RBC loan was repaid the next day, on March 22, 2013, by the Plaintiff. The dates coincide and the Court has no reason to believe that the agreement was not signed on the date it mentions. [ 13 ] The Defendant also argues that he did not really understand what he was signing. However, Me Druker testified that he did not remember that the Defendant had asked any questions.

On the contrary, the Defendant’s testimony showed that he understood that he was repaying his share in the RBC loan for which he was also personally responsible. [ 14 ] The Defendant blames the Plaintiff for not having continued to pay the loan through his new company when he started operating the restaurant again. The Plaintiff was under no obligation to do so.

[ 15 ] The Defendant also argues that the agreement is not a loan since no money was remitted when he signed it. It may have been more accurate to call the agreement an acknowledgment of debt, but it nevertheless reflects the intention of the parties to recognize that an amount was owing to the Plaintiff. [ 16 ] The agreement provided that the amount of $ 6,100 was repayable on March 21, 2015. It remains unpaid to this day. [ 17 ] The Court concludes that the claim is well founded. FOR THESE REASONS, THE COURT : GRANTS the application of the Plaintiff ; CONDEMNS the Defendant to pay the Plaintiff $ 6,100 with interest at 5% since March 21, 2013 and the additional indemnity of

article 1619 of the Civil Code of Quebe c since the demand letter of August 8, 2016; CONDEMNS the Defendant to pay the Plaintiff the Court costs of $185. __________________________________ CATHERINE PILON, j.c.q. Date of hearing: November 28, 2017