Long v. Brar

Long v. Brar

The communications (Jakubec email and covering letters) and surrounding circumstances created an express/implied trust and alternatively a contract: the GST funds remitted by the receiver were to be held and applied to CRA (net of ITCs). The trustee (817 through counsel) breached that trust by dissipating funds before returns/ITCs were determined. Defendants Brar and Jamani, as directors, knowingly participated in and directed the dissipation, being aware of the risk of non‑remittance and potential personal liability; they are therefore jointly and severally liable for plaintiff's losses. Alternatively, they are personally liable for 817's contractual breach. Damages of $304,788.11...

Citation
2021 BCSC 1799
Parties
Plaintiff: Alan Long; Defendant: Devinder Brar; Defendant: Bahadurali Jamani also known as Bhadur Jamani; Defendant: 0855817 B.C. Ltd.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
13 September 2021
Procedural Posture
Civil: Trust, Contract, Directors' Liability, Tax (gst) / Judgment After Trial (reasons for Judgment)
Outcome
Judgment for plaintiff Alan Long against 0855817 B.C. Ltd., Devinder Brar and Bahadurali Jamani (also known as Bhadur Jamani), jointly and severally liable.
Legal Topics
Breach of Trust, Knowing Assistance, Deemed Trust Under Excise Tax Act, Breach of Contract, Piercing the Corporate Veil, Apportionment of Fault, Damages and Mitigation
Source Language
English
Trusts and Equitable Obligations Contract Law Corporate and Directors' Liability Tax Law (gst) Civil Remedies and Damages Restitution/unjust Enrichment Breach of Trust Knowing Assistance +5 more

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Parties

Alan Long

Plaintiff

Devinder Brar

Defendant

Bahadurali Jamani also known as Bhadur Jamani

Defendant

0855817 B.C. Ltd.

Defendant

Procedural Posture

Civil: Trust, Contract, Directors' Liability, Tax (gst) / Judgment After Trial (reasons for Judgment)

Legal Issues

  1. 1 Whether the GST funds transferred to defendants' counsel were held on trust for CRA and/or for the plaintiff
  2. 2 Whether defendants (directors) knowingly participated in a dishonest and fraudulent breach of trust (knowing assistance)
  3. 3 Whether a contract arose obliging defendants to remit the GST funds to CRA and whether directors are personally liable

Ratio Decidendi

The communications (Jakubec email and covering letters) and surrounding circumstances created an express/implied trust and alternatively a contract: the GST funds remitted by the receiver were to be held and applied to CRA (net of ITCs). The trustee (817 through counsel) breached that trust by dissipating funds before returns/ITCs were determined. Defendants Brar and Jamani, as directors, knowingly participated in and directed the dissipation, being aware of the risk of non‑remittance and potential personal liability; they are therefore jointly and severally liable for plaintiff's losses. Alternatively, they are personally liable for 817's contractual breach. Damages of $304,788.11...

Court Disposition

Judgment for plaintiff Alan Long against 0855817 B.C. Ltd., Devinder Brar and Bahadurali Jamani (also known as Bhadur Jamani), jointly and severally liable.

Orders

  • Judgment awarded to plaintiff in the amount of 304788.11 CAD
  • Interest awarded pursuant to the Court Order Interest Act, R.S.B.C. 1996, c. 79