Canada Case Law

Hollis Ford Inc. v. Walker

Court

Nova Scotia Small Claims Court

Although the claimant's initial conduct suggested a gift, the parties formed an interest‑free loan agreement before the June 25, 2021 meeting; however the promissory note is an adhesion contract and the placement of the clause linking termination of employment to immediate repayment is ambiguous and must be resolved against the drafter, so the interest provision does not apply; the claimant cannot repossess and is awarded the unpaid balance of the interest‑free loan less adjustments; legal fees are denied and nominal general damages awarded to defendant.

Source excerpt

• Loan versus gift
• Promissory note
• Parol evidence rule
• Personal property registry
• Repossession
• Damages

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Zucker v. Zucker

Court

Supreme Court of British Columbia

On summary trial, the court found the parents’ transfers to their son and daughter-in-law were loans, not gifts, and entered judgment for $400,000.

• Resulting trust
• Promissory note
• Loan versus gift
• Duress/family violence
• Summary trial suitability
• Interest on judgment

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Grenier v. Williams

Court

Supreme Court of British Columbia

The court found a $20,000 family loan at 10% rather than a gift, awarded $31,920 in damages, and upheld a counterclaim for assault and battery.

• Loan versus gift
• Unjust enrichment
• Assault
• Battery
• Pre-judgment interest
• Gift letters

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Aulakh v. Aulakh

Court

Supreme Court of British Columbia

The court found a father had not gifted funds for a rental purchase and ordered repayment. It also rejected a son's resulting trust and WESA claims.

• Resulting trust
• Presumption of advancement
• Wills, estate and succession act s.60
• Loan versus gift
• Probate
• Resulting-trust

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Rosas v. Toca

Court

Supreme Court of British Columbia

The court found that $600,000 of a lottery windfall advance was an interest-free loan, but the claim was statute-barred because repayment was due in 2008.

• Loan versus gift
• Resulting trust (purchase-money)
• Limitation period and forbearance
• Credibility assessment
• Terms of oral loans
• Oral-loan

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Rosas v. Toca

Court

Supreme Court of British Columbia

At the close of the plaintiff’s case, the court dismissed the defendants’ no evidence motion in a loan-versus-gift dispute involving limitation issues.

• No evidence motion
• Limitation act
• Loan versus gift
• Resulting trust
• Unjust enrichment
• Interpretation/translation issues

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Baptista v. Safranko

Court

Court of Appeal for Ontario

The motion judge did not err in concluding there was no air of reality to the appellant's defence given the mortgage broker's evidence, the appellant's own written communications acknowledging indebtedness and payment patterns consistent with a loan; accordingly the discretionary decision to refuse to set aside the default judgment was entitled to deference and the appeal was dismissed.

Source excerpt

• Default judgment
• Setting aside default judgment
• Air of reality test
• Mortgage
• Loan versus gift
• Evidence

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Tobias v. Tobias

Court

Supreme Court of British Columbia

The court held that a $70,000 advance from the claimant’s parents’ corporation was a loan, not a gift, and ordered the parties jointly liable for repayment.

• Loan versus gift
• Resulting trust
• Family debt (s.86 fla)
• Significant unfairness and unequal division (s.95 fla)
• Division of proceeds of sale
• Presumptions of advancement/resulting trust

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Savost'Yanova v. Chui

Court

Supreme Court of British Columbia

The court found the parents’ Bank of Dad advances were loans to the respondent alone, not gifts, and ordered support, property reapportionment, and tax adjustments.

• Loan versus gift
• Presumption of resulting trust
• Spousal support entitlement and quantum
• Child support calculation and set‑off
• Retroactive support
• Income imputation

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Bellamy v. Ward

Court

Supreme Court of British Columbia

The court held that most advances to Ian Ward were loans, not gifts, and that only a $500 advance from 1991 was statute-barred. Interest was payable, and costs were limited to disbursements.

• Loan versus gift
• Statute of limitations
• Acknowledgement of debt
• Interest on informal loans
• Costs and forum jurisdiction
• Loan-versus-gift

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