A recent decision of the Federal Court of Canada should stand as a reminder that a borrower's unpaid taxes can take priority over secured lenders.
In a recent case out of the Quebec Superior Court, Pourshafiey v Toronto-Dominion Bank 2018 QCCS 3202, a former client of the Toronto-Dominion Bank, Hossein Pourshafiey, sought an injunction and damages against TD Bank when TD Bank, without explanation, ended its banking relationship with him and his company. TD Bank provided 30 days' notice that it was closing a number of his and his company's accounts, 60 days' notice of closing his home equity line of credit, and no notice that it was closing the wire service that Mr. Pourshafiey's company relied upon in order to be able to transfer money to and from Iran for its clients - the crux of its business.
The latest statistics show continuing slackening in Vancouver's residential real estate market. While signs of a slowdown in the single family detached market have been growing for some time, the latest figures point to the same trends beginning in the condo market as well.
People facing claims they want to avoid will sometimes be tempted to engage in fraud or lies to remove their assets from the reach of creditors. This temptation should be resisted, as such misconduct can lead to additional claims and even criminal charges.