The plaintiff moved for summary judgment to recover monies paid to the Canada Revenue Agency for source deductions and HST arising from a sole proprietorship operated in her name, and also sought dismissal of the defendant's counterclaim.
The parties had been in a common law relationship and disputed whether there was an oral agreement requiring the defendant to pay the tax liabilities of the business.
The court held that the record contained disputed evidence and required credibility findings that could not be made on a summary judgment motion.
The court also held that the counterclaim was properly brought under the Rules of Civil Procedure because the family property provisions of the Family Law Act do not apply to common law spouses.
The motion was dismissed, with costs in the cause.