Ink Painting Ltd. v. Memar Homes Inc.

Ink Painting Ltd. v. Memar Homes Inc.

Adjudicator found on the balance of probabilities that the claimant demanded cash to avoid remitting HST and intended to facilitate tax evasion; because a significant feature of the contract was illegal (tax evasion), the contract is unenforceable and the claim must be dismissed.

Citation
2010 NSSM 58
Parties
Claimant: Ink Painting Ltd.; Defendant: Memar Homes Inc.; Defendant: Samuel Saijad Rad
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
9 September 2010
Procedural Posture
Small Claims Court / Decision on Rehearing
Outcome
Claim dismissed in its entirety
Legal Topics
Illegal Contract, Unenforceability, Payment Dispute, Breach of Contract, Completion of Work
Source Language
English
Contract Law Tax Law Civil Procedure Illegal Contract Unenforceability Payment Dispute Breach of Contract Completion of Work

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Parties

Ink Painting Ltd.

Claimant

Memar Homes Inc.

Defendant

Samuel Saijad Rad

Defendant

Procedural Posture

Small Claims Court / Decision on Rehearing

Legal Issues

  1. 1 Whether the contract was illegal because the claimant intended to evade HST (tax evasion)
  2. 2 Whether the parties agreed to extras and the amounts claimed
  3. 3 Whether the claimant failed to complete the work and is therefore liable for the cost of completion

Ratio Decidendi

Adjudicator found on the balance of probabilities that the claimant demanded cash to avoid remitting HST and intended to facilitate tax evasion; because a significant feature of the contract was illegal (tax evasion), the contract is unenforceable and the claim must be dismissed.

Court Disposition

Claim dismissed in its entirety

Orders

  • Claim dismissed in its entirety