2022 QCCQ 337, 2022 QCCQ 337

Honda Canada Finance Inc. c. 7289413 Canada Ltd. 2022 QCCQ 337 COURT OF QUEBEC CANADA PROVINCE OF QUEBEC DISTRICT OF MONTREAL No: 500-22-267955-212 DATE: January 27, 2022 ______________________________________________________________________ BEFORE THE HONOURABLE ENRICO FORLINI, J.C.Q. ______________________________________________________________________ HONDA CANADA FINANCE INC.

Plaintiff v. 7289413 CANADA LTD And SRITHARAN VELAITHAN Defendants ______________________________________________________________________ JUDGMENT ______________________________________________________________________ [ 1 ] On May 13, 2021, the Defendants jointly purchased from Formula Honda a 2021 model year Honda Pilot vehicle bearing vehicle identification number [...] (“ Vehicle ”) pursuant to a Conditional Sales Agreement (P-1) for a purchase price of $68,278.96. [ 2 ] The Conditional Sales Agreement was entered into by the parties in the province of Ontario and is governed by the laws of that province. [ 3 ] Under the Conditional Sales Agreement, the Defendants jointly and severally agreed to pay the balance of sale price and the finance charges by way of 182 equal bi-weekly payments of $438.82. [ 4 ] The vendor, Formula Honda, assigned its rights in the Vehicle and the Conditional Sales Agreement (P-1) to the Plaintiff, Honda Canada Finance Inc. (« Honda Finance ») pursuant to clause 14 of the terms and conditions of the Agreement. [ 5 ] Moreover, under clause 1 of the terms and conditions of the Conditional Sales Agreement, Honda Finance retained title in the Vehicle until all amounts owing by the Defendants under the agreement are paid in full. [ 6 ] On June 15, 2021, Honda Finance learned from a bailiff, Sylvain Brouillard, that the Vehicle was in the process of being exported by ship out of Canada and was intercepted in a container in the Port of Montréal by the Insurance Bureau of Canada and the Canada Border Security Agency. [ 7 ] Honda Finance also subsequently learned that the Vehicle was declared stolen on June 22, 2021 [ 8 ] Defendants owe Honda Finance a balance of $60,022.63 under the Conditional Sales Agreement (P-1). [ 9 ] CONSIDERING that the Defendants’ attempt to export the Vehicle outside of Canada constitutes a default under clause 9a)(vi) of the terms and conditions of the Conditional Sales Agreement (P-1).

Moreover, the Defendants’ failure to pay all the bi-weekly installments also constitutes a default under clause 9a)(i). [ 10 ] CONSIDERING that under the laws of the province of Ontario, Honda Finance does not have the obligation to send the Defendants any prior notice in the event of a default. [ 11 ] CONSIDERING that under articles 3148(3) and 3152 of the Civil Code of Québec , Québec authorities, and specifically the Court of Québec, has jurisdiction to hear this matter. [ 12 ] WHEREAS on June 25, 2021, Honda Finance exercised its right of revendication and seized before judgment the Vehicle at the Port of Montréal. [ 13 ] CONSIDERING the affidavit sworn September 8, 2021 by Honda Finance’s representative Paule Brown. [ 14 ] CONSIDERING Defendants’ failure to answer the summons and the inscription setting the case down for judgment;

[ 15 ] CONSIDERING that Honda Finance has made proof of the essential allegations of its Demand. FOR THESE REASONS, THE COURT: [ 16 ] GRANTS Honda Canada Finance Inc.’s Originating Application; [ 17 ] DECLARES good and valid the seizure before judgment of the Vehicle more fully described as follows: 2021 Honda Pilot VEHICLE BEARING SERIAL NUMBER [...] [ 18 ] DECLARES that Honda Canada Finance Inc. is the sole owner of the Vehicle; [ 19 ] WITH LEGAL COSTS. __________________________________ ENRICO FORLINI, J.C.Q. Mr. Félix Trudeau, articling student Savoie Joubert Representing the Plaintiff Date of hearing: January 26, 2022