SUPERIOR COURT OF JUSTICE – ONTARIO

COMMERCIAL LIST

COURT FILE NO.: CV-12-9610-00CL

DATE: 20150928

RE:

BETWEEN:

MOHAN ROOPCHAND, MEJJ ENTERPRISES INC and MONDAY’S CHOICE MANAGEMENT CORPORATION

Plaintiffs, Defendants by Counterclaim

AND:

KIM CHAU and CENTURY 21 LEADING EDGE REALTY INC.

Defendants, Plaintiffs by Counterclaim

BEFORE: Newbould J.

COUNSEL:
R. Trent Morris, for the Plaintiffs/Defendants by Counterclaim

Lou Brzezinski and Chad Kopach, for the Defendants/Plaintiffs by Counterclaim

ENDORSEMENT

[1] Further to my reasons for judgment of May 15, 2015 in which I ordered Mr. Roopchand to purchase Mr. Chau’s shares in MEJJ Enterprises Inc. and Monday’s Choice Management Corporation at a purchase price of $640,000, an issue has arisen regarding the date that pre-judgment interest should run.

[2] This case has had a tortured history. However, at the first trial, no claim was made by Mr. Chau for purchase of his interest in MEJJ Enterprises Inc. and Monday’s Choice Management Corporation. The sole relief was that his 20% interest be recognized. Although on March 5, 2012 after the first trial I ordered that Mr. Chau’s interest was to be purchased by Mr. Roopchand, I changed that order on April 11, 2013 for reasons delivered that day. It was agreed that Mr. Chau did not ask for a buy-out order at the first trial even although it had been pleaded in his application, and that the only issue as settled at a pre-trial conference with Justice Campbell was that the remaining issue for trial was whether Mr. Roopchand signed the shareholders’ agreement that purported to bear his signature and that if the answer was yes, Mr. Chau was entitled to receive 20% of the shares of the two corporations.

[3] At the motion heard April 8, 2013, Mr. Chau asserted that the previous order that he be bought out should stand. I did not accede to that argument but ordered on April 11, 2013 that Mr. Chau could pursue his claim to be bought out. In my view, this is the date that pre-judgment interest should run from. It was only then that the cause of action arose as it was from that date that the request to be bought out was pursued. The earlier request for a buy-out in the original application was not pursued after the conference with Campbell J. The applicable pre-judgment rate for the second quarter of 2013 is 1.3%.

[4] It is agreed that post-judgment interest is to run at 2% per annum.

Newbould J.

Date: September 28, 2015