COURT FILE NO.: FS-12-73974-00
DATE: 2012-12-07
ONTARIO SUPERIOR COURT OF JUSTICE
B E T W E E N:
VINCENT WATKINS Applicant
- and -
CHERYL ANN WATKINS Respondent
Counsel: Deanna L. Huclack, for the Applicant In person, Respondent
HEARD: December 6, 2012, at Brampton, Ontario
BEFORE: Price J.
Reasons For Order
NATURE OF MOTION
[1] Ms Watkins moves for an order finding her husband in contempt for failing to comply with the following past orders of the court in this proceeding:
(a) The Order of Dunn J. dated April 20, 2012, which she asserts required Mr. Watkins to file an updated financial statement;
(b) The Order of Seppi J. dated June 7, 2012, requiring Mr. Watkins to pay the following amounts:
(i) $1,617.00 per month, effective September 1, 2011 as child support for the four children based on an imputed income of $70,000.00/yr, of which the retroactive portion of $16,170.00 (for the 10 months from September 2011 to June 1, 2012) was to be paid in the installment of $2,000.00 forthwith and $600.00 per month from July 1, 2012, in addition to the $1,617.00 per month ongoing, and he was to be given a credit of $1,400.00 for four payments of $350.00 each which he made;
(ii) $1,200.00 per month spousal support, effective September 1, 2011, of which the June 1, 2012 payment was to be made forthwith and the balance of the retroactive portion was to be credited to Ms Watkins from Mr. Watkins share of the parties’ Net Family Property upon final equalization;
(iii) Costs fixed at $750.00 and payable by June 21, 2012;
And which also required Mr. Watkins to return the 21 Sunbird Bowrider pleasure boat to be returned to the matrimonial home by June 14, 2012 by a third party to be arranged by Mr. Watkins.
(c) The Order of Bielby J. dated September 14, 2012, which required Mr. Watkins to obtain medical/dental coverage insurance for Ms Watkins and the children by October 14, 2012 (that is, within 30 days of the Order and to provide proof to Ms Watkins).
ANALYSIS AND EVIDENCE
[2] I will deal with the orders above in reverse order.
(a) Failure to reinstate medical/dental insurance coverage
[3] I find, based on the evidence before me and the submissions of Ms Huclack, from her own knowledge or facts she was given by Mr. Watkins’ insurer Manulife, that Mr. Watkins’ original policy of medical/dental coverage was cancelled in May 2012. He later tried to reinstate it and was told by Manulife that it was more cost-effective to apply for a new policy. He applied to Manulife on October 22, 2012, for a new policy but, for reasons that are not fully explained, he was not given a new policy number at that time (which Manulife says would have been customary even if some of the information required, such as the Health Card number of Ms Watkins and the children, which Mr. Watkins says he lacked but which Manulife would have had from Mr. Watkins’ previous policy file).
[4] Additionally, and also for reasons not fully explained, coverage was not put in place at that time: Manulife’s representative, Rachel, whom Ms Huclack spoke to by telephone today, has stated that such coverage would customarily have been put in place within two or three days after the application was made. Under the court’s direction, Mr. Watkins, with the help of Ms Huclack, tried to make a fresh application today to Manulife but was told that Manulife will not issue a new policy owing to previous non-payment.
(b) Failure to pay child and spousal support
[5] With regard to support, Mr. Watkins has made the following payments, acknowledged by Ms Watkins:
(i) August 12, 2011: $750.00 (ii) September 22, 2011: $1,000.00 (iii) May 8, 2012: $350.00 (iv) May 19, 2012: $350.00 (v) May 29, 2012: $350.00 (vi) June 11, 2012: $350.00 (vii) June 26, 2012: $350.00 (viii) August 14, 2012: $2.250.00 + $750.00 costs (ix) September 14, 2012: $5,300.00 (x) November 26, 2012: $3,254.00
Total: $12,554.00
[6] I find that the amounts Mr. Watkins was required to pay were as follows:
(i) By Dunn J.’s Order dated April 20, 2012: $1,5000.00
(ii) By Seppi J.’s Order dated June 7, 2012:
- On June 7, 2012: $2,000.00 interim child support
- $1,000.00 interim spousal support
Total $3,200.00
- On July 1, 2012: $2,217.00 interim child support ($1,617.00 + $600.00 retro) $373.00 interim spousal support (amended pursuant to Donohue J.’s Order dated July 27, 2012)
$2,580.00 $2,580.00
- On August 1, 2012: $2,580.00 (as above) $2,580.00
- On Sept. 1, 2012 $2,580.00 (as above) $2,580.00
- On Oct. 1, 2012 $2,580.00 (as above) $2,580.00
- On Nov. 1, 2012 $2,580.00 (as above) $2,580.00
- On Dec. 1, 2012 $2,580.00 (as above) $2,580.00 $20,180.00
[7] Based on the foregoing, I find that the unpaid arrears of support today, apart from the retroactive portion of spousal support to be credited to Ms Watkins from Mr. Watkins share of the Net Family Property, is $7,262.00. In addition, Mr. Watkins still owes arrears of $10,570.00 remaining for the period September 2011 to June 1, 2012, after deducting the six payments of $600.00 each due from July 1, 2012 to December 1, 2012, pursuant to Seppi J.’s Order of June 7, 2012, which he is required to continue paying ($16,170.00 minus ($2,000.00 + $3,600.00)).
[8] I reject categorically Mr. Watkins’ evidence regarding the “cash payments” he says he made to Ms Watkins. I am ordering that the transcript of Mr. Watkins’ testimony today, together with a copy of the carbon copy of the receipts that he alleges Ms Watkins signed, and which she alleges are forgeries, be given to Ms Watkins for transmittal to the Peel Police Services, whom the court will ask to investigate with a view to criminal prosecution. Mr. Watkins’ explanation that he gave the original receipts to Ms Watkins for cash payments which he was making to her is nonsensical, and the authenticity of the receipts is belied by the fact that some were allegedly prepared at times when Mr. Watkins was out of the Province, or at times when Ms Watkins was away at a cottage, and at times when Mr. Watkins has said he was earning income.
(c) The failure to return the boat
[9] Mr. Watkins now asserts that he transferred title to the boat to his current partner, Lorraine Wheeler on February 10, 2012, as security for $4,000.00 which she advanced to him. Mr. Watkins says that he paid that amount to his then lawyer, Marty Klein, on the same day or the following day in payment of an invoice dated February 1, 2012, in the amount of $3,507.34 for legal fees. Mr. Watkins has stated today that he paid the entire $4,000.00 to Mr. Klein, and Ms Huclack has pointed out that Mr. Klein continued acting for Mr. Watkins until April 2012, so that the balance of approximately $500.00 appears to have been paid to Mr. Klein as a retainer.
[10] The account statement which Mr. Watkins has produced shows a transfer of $4,000.00 from Lorraine, but a withdrawal of only $2,500.00. Mr. Watkins will be ordered to produce Mr. Klein’s trust ledger to Ms Watkins by December 16, 2012.
[11] Mr. Watkins assigned a value of $10,000.00 to the boat in his Financial Statement sworn January 23, 2012, of which he said his share was 50% or $5,000.00.
[12] Mr. Watkins stated in his Financial Statement filed with the court on June 1, 2012, that the boat, which he said had a value of $4,000.00 at that time, was in his possession. This appears to have been the basis of Seppi J.’s Order dated June 7, 2012, requiring Mr. Watkins to return the boat.
[13] Later, in his Affidavit sworn August 8, 2012, Mr. Watkins stated in paragraph 2(e) that he “had to sell this asset back in February 2012 to get funds to pay support to my children, but was unable to convey that information at the court date of June 7, 2012. The boat sold for $4,000.00.”
[14] In his November 29, 2012 affidavit, at paragraph 10, Mr. Watkins states that he sold the boat to Lorraine Wheeler in February 2012, to pay litigation costs.
[15] I reject Mr. Watkins inconsistent explanations for his failure to return the boat.
(d) Failure to file updated financial statement
[16] The Order of Dunn J. does not specifically order an updated financial statement to be produced, although it adjourns the proceeding to allow Mr. Watkins to file an updated financial statement. In any event, Mr. Watkins did file an updated Financial Statement sworn June 5, 2012, although his current lawyer acknowledges that it contained inaccuracies. He then filed a further Financial Statement sworn November 29, 2012, with the help of his current counsel, which Ms Huclack says corrected those inaccuracies.
CONCLUSION AND ORDER
[17] Based on the foregoing, I find that Mr. Watkins is not in contempt of Dunn J.’s Order by not filing an updated financial statement. I find that he is in contempt of Seppi J.’s Order dated June 7, 2012, by his failure to return the parties’ boat and by his failure to pay $7,626.00 of the amount of child support and spousal support that he was required to pay from June 7, 2012 to December 1, 2012, inclusive. I do not find him in contempt of Bielby J.’s Order dated September 14, 2012, by not reinstating medical/dental coverage, but I do find that such coverage has not yet been reinstated.
[18] Based on the foregoing findings, it is ordered that:
Upon receipt of the transcript of Mr. Watkins testimony at the hearing of the motion today, and of copies of the carbon-copied receipts, which Ms Watkins shall transmit these to the Peel Police Services and provide such other evidence as they require. The Peel Police Services is asked to investigate this evidence with a view to determining whether a criminal charge of forgery or obstruction of justice is warranted.
Mr. Watkins shall, by December 16, 2012, obtain from his former lawyer, Marty Klein, a copy of his trust ledger and produce it to Ms Watkins, who shall transmit it, together with this endorsement and such other information as may be required to the Peel Regional Police Services for investigation. The Peel Police Service is asked to investigate this evidence with a view to determining whether a charge of obstruction of justice or swearing a false affidavit is warranted;
Ms Watkins’ interest in the parties’ boat, in the amount of $5,000.00, shall be credited to Ms Watkins from Mr. Watkins’ interest in the parties’ Net Family Property when the court determines the parties’ entitlement to an equalization payment;
Mr. Watkins shall, by December 16, 2012, apply for and secure medical/dental coverage for Ms Watkins and the parties’ children equivalent to the coverage formerly in place for them from Manulife, from another insurer and shall, by that date, produce proof of such coverage to Ms Watkins. He shall maintain such coverage pending written agreement of the parties to terminate it or further order of the court.
Each party shall deliver to the other by December 16, 2012, a Request for Information in Form 20, setting out the specific information and documents they require from the other to calculate Mr. Watkins future obligation for child support, spousal support, contributions to section 7 expenses and equalization of Net Family Property. Each party shall, within 30 days following receipt of the other’s Request for Information, produce the documents and information requested. If any of the documents requested is not produced by January 16, 2013, the party required by this order to produce it shall, by that date, produce an affidavit setting out the steps taken to obtain the document, the reasons it was not produced, and a signed Direction to any third party who may be in possession of the document directing that party to produce it, at the expense of the party required by this order to produce it, directly to the other party.
If there is any problem in the implementation of the disclosure requirements of this order, either party may apply to the court for directions, which may be by motion in the form of a letter, with notice to the other party, addressed to me, care of my judicial secretary, Sherry McHady, for hearing by me by teleconference or in person between 9:00 a.m. and 10:00 a.m. on a date when I am presiding.
The parties shall exchange comprehensive offers to settle by January 30, 2013.
Mr. Watkins’ arrears pursuant to the orders of Dunn J. dated April 20, 2012, and pursuant to the order of Seppi J. dated June 7, 2012, as amended by Donohue J. dated July 27, 2012, fixed at $18,196.00 (the $10,570.00 balance of arrears payable pursuant to Seppi J.’s Order at the rate of $600.00 per month plus the $7,626.00 due but unpaid from June 7 to December 1, 2012 inclusive).
Mr. Watkins shall continue paying to Ms. Watkins the arrears as fixed in paragraph 8, above, at the rate of $600.00 per month, commencing January 1, 2013.
In addition, Mr. Watkins shall continue paying to Ms. Watkins child support at the rate of $1,617.00 per month from January 1, 2013, as fixed by Seppi J. on June 7, 2012, and as varied by Donohue J. on July 27, 2012.
This Order shall be enforced by the Family Responsibility Office and for this purpose a Support Deduction Order shall issue.
The parties have leave to conduct questioning or to bring motions after January 30, 2013, or to return the present motion for contempt for imposition of penalty and costs (which shall require filing on a costs outline).
The date of January 8, 2013, fixed by Bielby J. by his Order of September 14, 2012, for Case Conference and Settlement Conference is vacated and, in its place, the date of April 4, 2013 at 10:00 a.m. is fixed for a combined Settlement Conference and Trial Management Conference. The parties shall file separate Settlement Conference Briefs and Trail Management Conference Briefs in advance.
Approval of this Order as to form and content is dispensed with.
Price J.
Released: December 7, 2012
COURT FILE NO.: FS-12-73974 DATE: 2012-12-07
ONTARIO SUPERIOR COURT OF JUSTICE
B E T W E E N:
VINCENT WATKINS Applicant
- and -
CHERYL ANN WATKINS Respondent
REASONS FOR ORDER
Price J.
Released: December 7, 2012