Tribunals Ontario
Licence Appeal Tribunal
Tribunaux décisionnels Ontario Tribunal d'appel en matière de permis
Date: 2021-08-05
Appeal from a Proposal of the Registrar under the Motor Vehicle Dealers Act, 2002, to Revoke the Registration of the Motor Vehicle Salespersons and the Registration of a Motor Vehicle Dealer under the Act.
Between:
Joseph Anthony Sorbara, Port Whitby Village Inc. o/a Richmond Hill Chrysler, Dodge, Jeep, Ram and Sam Agha Appellants
and
Registrar, Motor Vehicle Dealers Act, 2002 Respondent
CONSENT ORDER
Order Made By: Marisa Victor, Member Date of Order: August 05, 2021
1Upon the application to the Tribunal by Sam Agha, Joseph Anthony Sorbara, Port Whitby Village Inc. o/a Richmond Hill Chrysler, Dodge, Jeep, Ram, the appellants, and the Registrar, Motor Vehicle Dealers Act, 2002, the respondent, for issuance of a Consent Order of the Tribunal without a hearing pursuant to section 4.1 of the Statutory Powers and Procedures Act, R.S.O. 1990, c. S.22; and
2Having reviewed the signed written settlement agreement by the appellants and the respondent (Schedule ‘A’), and the signed written addendum to the settlement agreement by the appellants and the respondent (Schedule ‘B’), as to the disposition of these proceedings;
3Therefore, on consent of the parties, this Tribunal orders that the terms and conditions set out in Schedule ‘A” and Schedule ‘B’ are incorporated into and made part of this Order and this matter is concluded and disposed of without a hearing.
LICENCE APPEAL TRIBUNAL
Marisa Victor, Member
Released: August 05, 2021
SCHEDULE “A”
TO: Licence Appeal Tribunal Tribunals Ontario Safety, Licensing Appeals and Standards Division PO Box 250 Toronto, ON M7A 1N3
FROM: The Registrar, Motor Vehicle Dealers Act, 2002 Ontario Motor Vehicle Industry Council 65 Overlea Blvd., Suite 300 Toronto, ON M4H 1P1
AND FROM: Port Whitby Village Inc. o/a Richmond Hill Chrysler, Dodge, Jeep, Ram 10731 Yonge Street Richmond Hill, ON L4C 3E1
AND FROM: Joseph Anthony Sorbara c/o Port Whitby Village Inc. o/a Richmond Hill Chrysler, Dodge, Jeep, Ram 10731 Yonge Street Richmond Hill, ON L4C 3E1
AND FROM: Sam Agha c/o 2551276 Ontario Inc o/a Kia of Newmarket 80 Harry Walker Parkway Newmarket, ON L3Y 8W2
Pursuant to subsection 6(2) of the Motor Vehicle Dealers Act, 2002 (the “MVDA”), Port Whitby Village Inc. o/a Richmond Hill Chrysler, Dodge, Jeep, Ram ("Richmond Hill Chrysler") Joseph Anthony Sorbara ("Sorbara") and Sam Agha ("Agha")(collectively, the “Registrants”) and the Registrar, Motor Vehicle Dealers Act, 2002, (the "Registrar”), in accordance with section 4.1 of the Statutory Powers Procedure Act, do hereby waive the requirements of a hearing and consent to an Order of the Licence Appeal Tribunal ("Consent Order") based upon the following terms and conditions:
The Registrar agrees that Richmond Hill Chrysler will be registered as a motor vehicle dealer, Sorbara will be registered as motor vehicle salesperson for Richmond Hill Chrysler, and Agha will be registered as a motor vehicle salesperson, subject to the requirements outlined in the MVDA and the terms and conditions contained herein.
The parties have entered into, as a condition of this Consent Order, an Agreed Statement of Facts ("ASF"), and have agreed to keep the ASF strictly confidential. However, in the event of a breach of any of the terms and conditions contained herein, the Registrar shall be permitted to rely on the ASF in support of any future administrative proceedings, including, without limitation, any Proposal to Refuse to Renew, Suspend or Revoke Registration.
The Registrants shall comply with all requirements of the MVDA and Ontario Regulation 333/08, the Code of Ethics in Ontario Regulation 332/08 and the Ontario Motor Vehicle Industry Council (“OMVIC”) Standards of Business Practice, 2010, as may be amended from time to time. The Registrants further agree to read all correspondence and bulletins from OMVIC, including all OMVIC guidelines, as released.
The Registrants shall provide payment to warranty providers with all warranty payments Richmond Hill Chrysler receives from a purchaser within seven days, pursuant to section 47 of Ontario Regulation 333/08.
The Registrants shall take all steps necessary to ensure that any vehicles they offer for sale or have sold are free of any liens or encumbrances, pursuant to section 13 of the Sales of Good Act, R.S.O. 1990, Ch S. 1, as amended.
Richmond Hill Chrysler shall satisfy the liens on both the vehicles they sell and the trade-ins they receive within 7 days of the relevant transaction date.
Richmond Hill Chrysler shall provide a $100,000 CAD letter of credit from a Canadian registered financial institution in favour of the Motor Vehicle Dealers Compensation Fund within six months of the date of the Consent Order, and Richmond Hill Chrysler agrees to provide same earlier if possible. The Letter of Credit shall be in a form and contain terms acceptable to the Registrar, acting reasonably. Upon request from Richmond Hill Chrysler, the letter of credit shall be returned to Richmond Hill Chrysler after 2 years from the date it is received by the OMVIC Compensation Fund. The return of the Letter of Credit to Richmond Hill Chrysler is subject to OMVIC’s Letter of Credit return process and the Registrar's approval, which shall not be unreasonably withheld.
During the six month period noted in paragraph 7 above, Richmond Hill Chrysler expressly acknowledges that the Registrar may issue an immediate suspension order against Richmond Hill Chrysler in the event that the LOC is not received within six months of the date of the Consent Order, or if there are any unpaid liens or warranties which are not paid in accordance with the requirements of the MVDA during such six month period.
For a period of 2 years from the date of the Consent Order, Richmond Hill Chrysler shall provide the Registrar with its financial statements no later than 120 days after completion of its fiscal year.
Richmond Hill Chrysler acknowledges that "trade" refers to buying, selling, leasing, advertising or exchanging an interest in a motor vehicle or negotiating or inducing or attempting to induce the buying, selling, leasing or exchanging of an interest in a motor vehicle as defined in the MVDA and pursuant to section 36 through to and including section 51 of Ontario Regulation 333/08; and is not limited to the signing of contracts. Richmond Hill Chrysler further acknowledges that this includes attendance at auction on behalf of Richmond Hill Chrysler and positions commonly referred to as Sales Manager, Finance and Insurance Manager, Branch Manager, Business Manager, General Manager or any individual who has supervisory authority over salespersons.
The Registrants will ensure that the registration will not be used to trade in motor vehicles where the Registrants know, or ought to know, that trading motor vehicles will facilitate an illegal or unethical practice.
Richmond Hill Chrysler will ensure that all personnel, agents, assignees or anyone acting on behalf of Richmond Hill Chrysler are informed of the Terms and Conditions contained in this document to the extent necessary to ensure compliance with these Terms and Conditions.
Richmond Hill Chrysler will ensure that all personnel, agents, assignees or anyone acting on behalf of the Richmond Hill Chrysler to trade motor vehicles will be registered as a salesperson to Richmond Hill Chrysler.
While Sorbara is an officer and/or director of Richmond Hill Chrysler, Sorbara shall be responsible for ensuring Richmond Hill Chrysler's compliance with its conditions of registration.
FINANCIAL RESPONSIBILITY
Richmond Hill Chrysler agrees not to receive any new sources of financing without the prior written approval of the Registrar. This does not apply where the dealer has applied on its own account and has obtained financing from a corporation registered under the Loan and Trust Corporations Act, The Bank Act or from a credit union or league to which the Credit Unions and Caisse Populaires Act applies.
Richmond Hill Chrysler shall maintain bank accounts that are compliant with section 59 of Ontario Regulation 333/08.
Richmond Hill Chrysler shall ensure that all bank transactions relate exclusively to the operation or financing of the business. The Registrants agree to notify the Registrar of any change in any business banking accounts.
Richmond Hill Chrysler shall comply with all federal, provincial and municipal tax obligations. Richmond Hill Chrysler shall ensure all required filings are current and submitted with required payments. All taxes collected are deemed to be trust funds and will not be used for any other purpose other than remittances to the federal, provincial and municipal governments.
The following conditions shall apply specifically to Sorbara and Agha:
Sorbara and Agha will retain their registration as motor vehicle salespersons, subject to the MVDA and compliance with these conditions.
Sorbara and Agha shall not trade in motor vehicles, including not being a final signatory on any Bill of Sale, for 30 and 60 days respectively (“Professional Development Period”) from the date of this Consent Order.
During the Professional Development Period, Sorbara and Agha shall successfully complete the OMVIC Key Elements course and Georgian Colleges Law and Ethics course (collectively the “OMVIC Courses”) with a mark in each course of at least 70%. Upon completion of the OMVIC Courses, written proof shall be submitted to the Registrar.
Until the Professional Development Period has been completed, and Sorbara and Agha have complied with the aforementioned requirement to pass the OMVIC Courses, Sorbara and Agha shall not trade in motor vehicles, including not being a final signatory on any Bill of Sale, on behalf of a registered Dealer.
Without limiting the generality of the foregoing and the Registrar's authority pursuant to the MVDA, Richmond Hill Chrysler and Sorbara each acknowledge that the Registrar may take further administrative action, including issuing a Proposal to Refuse to Renew, Suspend or Revoke Registration, should Richmond Hill Chrysler or Sorbara fail to comply with these conditions.
Without limiting the generality of the foregoing and the Registrar's authority pursuant to the MVDA, Agha acknowledges that the Registrar may take further administrative action, including issuing a Proposal to Refuse to Renew, Suspend or Revoke Registration, should Agha fail to comply with these conditions.
ACKNOWLEDGMENT AND UNDERTAKING:
The Registrar is relying on the accuracy and completeness of all documents, statements or information provided by the Registrants.
The Registrants acknowledge that the Registrar may take further administrative action, including a proposal to suspend or revoke registration, arising from any matters that have occurred or may occur related to honesty and integrity, financial responsibility or compliance with these terms and conditions.
Independent legal advice has been obtained or the Registrants have had the opportunity to obtain independent legal advice respecting consent to the Terms and Conditions contained in this document.
Except for the condition contained in paragraph 7, the Conditions contained in this document shall be in force for a period of two (2) years from the date of the Consent Order.
Port Whitby Village Inc. o/a Richmond Hill Chrysler, Dodge, Jeep, Ram
Date:
I have authority to bind the Corporation
Joseph Sorbara Date:
Sam Agha Date:
These Terms and Conditions are accepted by the Registrar, Motor Vehicle Dealers Act, 2002.
Maureen Harquail, Deputy Registrar
Date:
SCHEDULE “B”
Addendum to Consent Order
Paragraphs 21 and 22 should be deleted and replaced by new paragraphs 21, 22 and 22.1. The new paragraphs 21, 22 and 22.1 should read as follows:
During the Professional Development Period, Sorbara and Agha shall successfully complete the MVDA Key Elements course (the “MVDA Course”) with a mark of at least 70%. Upon completion of the MVDA Course, written proof shall be submitted to the Registrar.
Until the Professional Development Period has been completed, and Sorbara and Agha have complied with the aforementioned requirement to pass the MVDA Course, Sorbara and Agha shall not trade in motor vehicles, including not being a final signatory on any Bill of Sale of a registered Dealer.
22.1 Sorbara and Agha shall also successfully complete the Automotive Law and Ethics – Laws 1009 course offered by Georgian College (the “Law & Ethics Course”) with a mark of at least 70%. Sorbara and Agha shall take the Law & Ethics Course at the first available offering by Georgian College in which they are eligible to register. Written proof of registration and pass mark shall be submitted to the Registrar.
Port Whitby Village Inc. o/a Richmond Hill Chrysler, Dodge, Jeep, Ram
Name:
Date:
I have authority to bind the Corporation
Joseph Sorbara Date:
Sam Agha Date:
These Terms and Conditions are accepted by the Registrar, Motor Vehicle Dealers Act, 2002.
Maureen Harquail, Deputy Registrar
Date:
SCHEDULE “B”
Addendum to Consent Order Applicable to Mr. Agha as a Result of an Accommodation Requirement
Paragraphs 20, 21 and 22 of the originally signed Consent Order should be deleted and replaced by new paragraphs 20, 21 and 22. The new paragraphs 20, 21 and 22 and of this Addendum are only applicable to Mr. Agha and should read as follows:
Agha shall not trade in motor vehicles, including not being a final signatory on any Bill of Sale, for six (6) months (“Professional Development Period”) from the date of this Consent Order.
During the Professional Development Period, Agha shall successfully complete the OMVIC Automotive Certification course (the “OMVIC Course”) with a mark of at least 80%. Upon completion of the OMVIC Course, written proof shall be submitted to the Registrar.
Until the Professional Development Period has been completed, and Agha have complied with the aforementioned requirement to pass the OMVIC Course, Agha shall not trade in motor vehicles, including not being a final signatory on any Bill of Sale of a registered Dealer.
Sam Agha Date:
These Terms and Conditions are accepted by the Registrar, Motor Vehicle Dealers Act, 2002.
Maureen Harquail, Deputy Registrar
Date: