Tribunal File Number: 12255/MVDA
Motion pursuant to s. 9(11) of the Motor Vehicle Dealers Act, 2002, S.O. 2002, c. 30, Sch. B, to stay an Order of the Tribunal revoking the registrations.
Between:
Toronto Quality Motors Inc., 2291683 Ontario Inc. o.a The Auto Dealer
and Khaled Mousa-Khaled
Appellant
and
Registrar, Motor Vehicle Dealers Act, 2002
Respondent
CONSENT ORDER
ADJUDICATOR: Jennifer Friedland
APPEARANCES:
For the Appellant: Laney Paddock, Counsel
Khaled Mousa-Khaled, Appellant
For the Respondent: Diana Mojica, Counsel
Date of Motion August 20, 2021 by teleconference
BACKGROUND
1By Order of the Tribunal dated April 1, 2021, the appellants, Mr. Khaled Mousa-Khaled ("MK"), Toronto Quality Motors Inc. ("TQM"), and 2291683 Ontario Inc., which operates under the name "Auto Dealer" ("Auto Dealer") were granted a stay of the Tribunal's order dated February 6, 2021 ("the February 6th Order") pending the appellants' appeal to the Divisional Court.
2The February 6th Order directed the Registrar to carry out its proposal issued under s. 9(1)(b) of the Motor Vehicle Dealers Act, 2002 S.O. 2002, c. 30, Sch. ("MVDA") to revoke the registrations of MK, TQM and Auto Dealer as a salesperson, a motor vehicle dealer and a motor vehicle dealer (wholesale class), respectively.
3The February 6th Order was stayed with conditions following a motion. The reasons for decision can be found at 2021 CanLII 30528 (ON LAT) | Toronto Quality Motors Inc., 2291683 Ontario Inc. o.a The Auto Dealer and Mousa-Khaled v. Registrar, Motor Vehicle Dealers Act, 2002.
4One of the terms of the stay allowed the Registrar to bring the matter back before the Tribunal if there were a beach of any of the conditions. The Registrar brought a motion on June 14, 2021 seeking that the stay be lifted. The Registrar's position was that the appellant had not complied with the disclosure conditions of the Stay Order.
5The motion commenced before me on August 12, 2021 but was adjourned on consent due to late disclosure on the part of the appellant that the Registrar wished to review.
6Before the resumption of the motion, the parties agreed to terms by which the Stay would continue.
7Therefore, on consent of the parties, I order as follows:
ORDER
8The stay of the Tribunal's Order dated February 6, 2021 continues as per the Tribunal's Order dated April 1, 2021 subject to the following changes:
9Paragraphs 38 c) and d) of the Order dated April 1, 2021 are replaced with the following conditions:
a) For every transaction, including canceled transactions, conducted by the appellants from August 1, 2021 and ongoing throughout the duration of the Stay, the appellants will provide the Registrar with the following information and documents:
i. the VIN, make and model number of the vehicle
ii. Bill of Sale
iii. Vehicle History Report – detailed version (i.e Carfax)
iv. Copy of a signed acknowledgement from the consumer, attached to the Bill of Sale, stating that the consumer has received a copy of the attached Bill of Sale with respect to the transaction
v. Wholesale Bill of Sale if applicable
vi. Trade-in disclosure form, if applicable
vii. Credit application, if applicable
viii. Finance agreement, if applicable
ix. Warranty contract, if applicable
x. Invoices for outside repairs /inspections that were arranged by TQM but not conducted by TQM, if applicable
xi. Invoice for parts for repairs conducted by TQM, if applicable
xii. Safety Standard Certificates, if applicable
xiii. Copy of cheque used to pay a lender for a trade-in vehicle, if applicable
xiv. Copy of the lien release for a trade-in vehicle if applicable
b) The process by which the above disclosure will be made shall be as follows:
i. Within two weeks of each transaction, the relevant documents as set out above shall be uploaded to a shared Google drive created by the appellants to which both the appellants and the respondent will have ongoing access.
ii. The appellants shall upload the applicable documents for each transaction into a folder on the shared drive that is labeled in the following format (including dashes): YYYY-MM-DD - last four numbers of VIN - vehicle make - consumer's last name.
iii. There shall be one folder only per transaction. The required documents do not need to be in any particular order nor do they need to be individually labeled. For example, it is sufficient for the appellants to create one pdf containing all of the applicable documents.
iv. If, for any reason, an applicable document as set out above, is not available for a particular transaction (including a canceled transaction), the appellants shall provide an explanation in writing for the missing document, which explanation shall be uploaded into the applicable file.
c) The Registrar may request further information regarding the above disclosure if it deems necessary.
d) With respect to the appellants' disclosure of transactions from June and July 2021, the Registrar may request particular documents as listed above which shall be provided within one week of the request.
e) The appellants shall continue to move expeditiously with their appeals.
f) The Registrar may bring the matter back before the Tribunal if there is a breach of any of the above conditions, at which time the Tribunal will consider whether the stay should be lifted.
LICENCE APPEAL TRIBUNAL
_______________________
Jennifer Friedland, Member
Released: August 26, 2021