ONTARIO

SUPERIOR COURT OF JUSTICE

COURT FILE NO.: CV-09-384388

DATE: 20141230

BETWEEN:

DARKO GAGRO

Plaintiff

– and –

IPI INTERNATIONAL GROUP INC. and
IVAN MARIJIAN PERKOVIC

Defendants

Howard C. Cohen, for the Plaintiff

HEARD: December 12, 2014

Carole J. Brown, J.

reasons for decision

[1] This undefended action arises from a loan made by the plaintiff to the defendants and witnessed by a promissory note executed by the parties on April 9, 1997. This action had proceeded through the judicial pretrial with a companion action, brought by the plaintiff as against Marin Sopta June 16, 2014. The two trials were to proceed seriatim, but following the first trial as against Mr.Sopta, there was insufficient time to hear the second matter.

[2] The plaintiff, a dental surgeon in Toronto, agreed to loan monies to the defendant, a film producer and member of the Toronto Croatian community, as was the plaintiff, for purposes of a film being produced by the defendant concerning Croatia, and the political situation related thereto. The parties had known one another through others in the Croatian community in Toronto.

[3] The plaintiff testified as regards the loans made to him. The documentary evidence indicates that from August 12, 1994 through May 9, 2001, the plaintiff loaned the defendant, and his company, IPI International Group Inc., which was involved in distributing the film produced internationally, monies in order to continue financing the film, which had run into financial difficulties. On April 9, 1997, the parties executed a promissory note, which evidenced the principal loan amount of $78,000 dated December 25, 1997 and the interest rate of 21% per annum. The promissory note was signed by the defendant, Ivan Perkovic on behalf of his company, IPI International Group Inc., and in his personal capacity. The document indicates that there are two signatures for Ivan Perkovic, one signed over the name of his company, and a second signed on the signing line below. It was the evidence of the plaintiff that Mr. Perkovic had acknowledged that he would guarantee the promissory note personally. This evidence is corroborated by the plaintiff's witness, Gordon Novak, who witnessed the signing of the promissory note dated April 9, 1997 by the defendant, Mr. Perkovic, who he knew through the Croatian community in Toronto and understood from the discussions between the plaintiff and defendant, while Mr. Novak was present, regarding the personal guarantee.

[4] The evidence further indicates that from September 1997 through July 1998, repayment was made by the defendants in the total amount of $10,500. The plaintiff has adduced an accounting of the amounts outstanding including the accrual of interest at 21% calculated and payable monthly from April 9, 1997.

[5] I am satisfied based on the evidence before me, including the testimony of the plaintiff and Mr. Novak, as well as the documentary evidence, that the promissory note is due and owing in the total amount of $67,500 plus interest accrued pursuant to the promissory note at the rate of 21% per annum, calculated and payable monthly from April 29, 1997 to the date of this judgment.

[6] As regards the limitation period argument raised initially by the defendants, I have read and considered the decision of B.O'Marra J. In the companion action of Gagro v Sopta and adopt that reasoning as regards the Limitation Act provisions. I note, further, that in this case, the supporting evidence is even more compelling, as there was also a clear acknowledgment of debt and three part-payments made.

[7] I am satisfied that the plaintiff is entitled to all amounts owing, as well as his costs. I order that the defendants pay to the plaintiff the amounts due and owing pursuant to the promissory note in the total amount of $67,500, plus interest at the rate of 21% per annum, calculated and payable monthly, commencing April 9, 1997 Pursuant to the Bill of Costs presented, the plaintiff's costs on a substantial indemnity basis amount to $25,622.94, including disbursements and HST and, on an actual basis, $32,648.73. I award the plaintiff his costs in the amount of $30,000 including HST and disbursements.

Carole J. Brown, J

Date: December 30, 2014