3225163 Nova Scotia Ltd. v. McIsaac

3225163 Nova Scotia Ltd. v. McIsaac

Because the parties agreed the transaction was an assets-only sale, the defendants improperly withheld $1,374.82 in membership fees which belonged to the claimant and must be paid; the claimant remained responsible for insurance while the lease remained in its name; HST issues are for Revenue Canada and were not adjudicated against the claimant on the evidence; the defendants' counterclaim was not sufficiently linked to the asset sale and is dismissed.

Citation
2012 NSSM 51
Parties
Claimant: 3225163 Nova Scotia Ltd.; First Defendant: Anne Mary MacIsaac; Second Defendant: Janis Irene MacGillivray
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
7 November 2012
Procedural Posture
Small Claims Court Sale of Franchise Assets / Decision (adjudication)
Outcome
Judgment for claimant in the amount of $1,466.29; counterclaim dismissed with no order as to costs.
Legal Topics
Sale of Assets, Resale Application, Membership Fees, HST (sales Tax), Insurance Responsibility, Counterclaim, Lease Transfer
Source Language
English
Franchise Law Contract Law Tax Law Insurance Law Property/lease Law Sale of Assets Resale Application Membership Fees +4 more

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Parties

3225163 Nova Scotia Ltd.

Claimant

Anne Mary MacIsaac

First Defendant

Janis Irene MacGillivray

Second Defendant

Procedural Posture

Small Claims Court Sale of Franchise Assets / Decision (adjudication)

Legal Issues

  1. 1 Whether defendants were entitled to withhold $1,374.82 membership fees in an assets-only sale
  2. 2 Which party was responsible for insurance for August 2012 while lease remained in claimant's name
  3. 3 Whether HST liability was adjudicable between parties or a matter for Revenue Canada

Ratio Decidendi

Because the parties agreed the transaction was an assets-only sale, the defendants improperly withheld $1,374.82 in membership fees which belonged to the claimant and must be paid; the claimant remained responsible for insurance while the lease remained in its name; HST issues are for Revenue Canada and were not adjudicated against the claimant on the evidence; the defendants' counterclaim was not sufficiently linked to the asset sale and is dismissed.

Court Disposition

Judgment for claimant in the amount of $1,466.29; counterclaim dismissed with no order as to costs.

Orders

  • Defendants pay the Claimant $1,374.82
  • Defendants pay court costs $91.47