Superior Court of Justice - Ontario

COURT FILE NO.: 09-46525
MOTION HEARD: 2011/12/09

RE: Jodi Graham et al v. Karine Lianne Lemay et al

BEFORE: MASTER MACLEOD

COUNSEL:
William Sammon, for the Plaintiffs

Donna Crabtree, for the Defendant, Chevrolet West Inc.

Mark D. Lerner, for the Defendant, City of Ottawa

Debbie Orth, for the Defendant, Capital Dodge

Kevin Bunt, for the Defendant, Daimler Chrysler Financial Services

Christopher Whibbs, for the Defendant, GMAC Leaseco Corporation

Jaye E. Hooper, for the Defendant, Mario Pietrantonio

HEARD: December 9 th , 2011

SUPPLEMENTARY REASONS

[ 1 ] In my recently released endorsement, it appears I omitted the outstanding question in relation to the discovery of Darren Heavens. Q. 87 was a question as to what is the profit made by Chevy West on a leased vehicle.

[ 2 ] As indicated in the reasons, I consider questions relating to the ownership and control of the vehicle to be relevant. The financial relationships between the dealer and the financing company and the manufacturer are relevant to the extent that the incidents of ownership are divided between the different entities and to the extent that the benefits accruing to the lessor also flow through. Thus who earns profit from a lease and who may exercise the authority of the lessor will be relevant.

[ 3 ] The precise profit earned by the dealership on a lease is not directly relevant. Mr. Heavens answered a series of questions in which he explained the financing, purchase, leasing and assignment of leases. From these answers it appears the dealership purchases the vehicle at manufacturer’s cost and then assigns the lease to GMAC Leasco. GMACL then pays the dealership for the lease and the dealership pays off the financing. The evidence is that on a $23,414 vehicle, the dealership received $18,000 immediately, the downpayment paid by Mr. Lemay and then two cheques for the remaining 20% of the lease. It was in this context that the question was asked and it appears necessary to have that answer in order to make sense of the answers that were given and of the documents that have been produced.

[ 4 ] The question is therefore to be answered. The question was not what profit was made but how profit is calculated.

Master MacLeod

Date: March 19, 2012