The appellant, a lawyer, retained the respondent law firm for a real estate purchase.
Due to a software error, the respondent failed to collect the Municipal Land Transfer Tax from the appellant before closing, but the tax was automatically withdrawn from the respondent's trust account.
The respondent sued in Small Claims Court and won.
On appeal, the appellant argued the action was a nullity because the respondent failed to render an account under s. 2(1) of the Solicitors Act before suing for a 'disbursement'.
The Divisional Court dismissed the appeal, holding that an independent tax obligation is not a disbursement for business done by a solicitor as such under the Act.