2014 QCCQ 2337, 2014 QCCQ 2337

6750966 Canada inc. c. Royal Bank of Canada 2014 QCCQ 2337 COURT OF QUEBEC (Small Claims Court) CANADA PROVINCE OF QUEBEC DISTRICT OF MONTREAL TOWN OF MONTREAL No: 500-32-132167-125 DATE: March 11, 2014 ______________________________________________________________________ BY THE HONOURABLE MARIE MICHELLE LAVIGNE, J.C.Q. ______________________________________________________________________ 6750966 CANADA INC. Plaintiff v.

ROYAL BANK OF CANADA Defendant ______________________________________________________________________ JUDGMENT ______________________________________________________________________ [ 1 ] The Plaintiff 6750966 Canada Inc. (Canada Inc.) is a corporation wholly owned by Mr. Thomas Akwasi Apraku who is its sole shareholder and administrator. [ 2 ] In April 2011, Mr. Apraku requested a loan from the Royal Bank of Canada (RBC). [ 3 ] In order to obtain this loan, he agreed to mortgage in favour of RBC a property belonging to his company 6750966 Canada Inc.. [ 4 ] The loan was made to Canada Inc. and Mr.

Apraku personally. The documents were signed on April 8, 2011. The deed of hypothec was signed on June 27, 2011 and the disbursement of an amount of $222,320.96 was made on June 30, 2011. [ 5 ] The property on which the mortgage was taken was later sold on August 15, 2011. [ 6 ] Mr. Apraku claims that the disbursement of the loan should have been made into Canada Inc.'s account and not his personal account at RBC. By mistake, RBC deposited this amount into his personal account. Mr.

Apraku claims the interest that could have been generated if the amount of $222,320.96 had been deposited in the corporation's account. [ 7 ] Mr. Apraku noticed RBC's "mistake" on or about July 18, 2011. He contacted Mr. Sandro Mosca of RBC who recommended that Mr. Apraku makes a personal cheque from his personal account to the corporation account. [ 8 ] Mr. Apraku did not want to do that. He did not want to confuse his personal assets with those of his corporation. [ 9 ] Mr. Apraku communicated and met with many representatives of RBC to solve this problem.

It is only on September 6, 2011, that RBC issued a letter of credit to transfer the amount from Mr. Apraku's personal account to the corporation's at La Caisse Populaire. [ 10 ] The RBC loan had been made jointly to Canada Inc. and Mr. Apraku. The documents signed on April 8, 2011 [1] outlined the fact that the monthly payments of the loan should be made out of Mr. Apraku's personal account [2] . [ 11 ] When Mr.

Apraku went to the notary to sign the deed of hypothec, he also signed a document entitled "Client Acknowledgment" by which he authorized and directed the RBC to disburse the funds in the following manner: "c. To deposit any net proceeds of the mortgage loan or personal loan, as applicable, to my Royal Bank of Canada Account no. ___________________ Transit #_______________________" [ 12 ] The number of the account was not written on the document but Canada Inc. did not have an account with RBC and Mr. Apraku only had a personal account. [ 13 ] The fact that RBC deposited the amount in Mr.

Apraku's personal account is not a contractual breach according to the documentation signed by Mr. Apraku since the loan was granted to Canada Inc. and Mr. Apraku. [ 14 ] Moreover, even if the Court was to conclude that RBC made a mistake by paying the proceeds of the loan in Mr. Apraku's personal account, Mr. Apraku was informed of the situation as early as July 18, 2011. At that date, he refused the suggestion of Mr.

Sandro Mosca to transfer the money into Canada Inc.'s account by issuing a personal cheque. This was an acceptable solution to the problem and Canada Inc. could have benefited from the money as early as July 19 th 2011. [ 15 ] There is no proof that this suggestion was not acceptable and that, by doing so, Mr. Apraku or Canada Inc. would have confused his personal assets with those of the corporation and that this would constitute a breach of same legal obligations. [ 16 ] By paying the proceeds of the loan into Mr.

Apraku's personal account, RBC acted in conformity with the terms of the deed of loan signed with Mr. Apraku and Canada Inc. FOR THESE REASONS, THE COURT: DISMISSES Plaintiff 6750966 Inc.'s claims against Defendant the Royal Bank of Canada; THE WHOLE WITH costs. __________________________________ MARIE MICHELLE LAVIGNE, J.C.Q Date of hearing: February 24, 2014