Awan v. Quorum Funding Corp., (1999) 122 O.A.C. 67 (CA)

• Judge: Doherty, Abella and O'Connor, JJ.A.
• Court: Court of Appeal (Ontario)
• Case Date: June 11, 1999
• Jurisdiction: Ontario
• Citations: (1999), 122 O.A.C. 67 (CA)

Awan v. Quorum Funding Corp. (1999), 122 O.A.C. 67 (CA)

MLB headnote and full text

Temp. Cite: [1999] O.A.C. TBEd. JN.084

Mohammed Idris Awan (plaintiff/appellant) v. Quorum Funding Corporation, YCL Capital Corporation, Canadian Imperial Bank of Commerce, and Amnicon Corporation (defendants/respondents)

(C26171/96)

Indexed As: Awan v. Quorum Funding Corp. et al.

Ontario Court of Appeal

Doherty, Abella and O'Connor, JJ.A.

April 14, 1999.

Summary:

The Canadian Imperial Bank of Commerce (CIBC) offered investor immigration advice to its customers. As a result of such advice, Awan invested $250,000 in Amnicon through a joint venture on March 26, 1987. Quorum Funding Corp. managed the joint venture. The joint venture agreement gave Awan the option of a refund of his invest­ment if he did not receive a Canadian immi­grant's visa within 12 months of the agree­ment. Awan was denied a landed immigrant visa, but offered a Minister's Permit. By December 1988, Amnicon was facing bank­ruptcy. Around the middle of 1989, Amni­con was insolvent. On June 12, 1989, Awan requested a refund from Quorum. Quorum denied the request. Awan sued Quorum and CIBC. In defence, Quorum asserted, inter alia, that the refund had to be claimed within a 12 month period.

The Ontario Court (General Division), in a decision reported at 18 O.T.C. 201, dis­missed the action. The court held, inter alia, that there was no basis in the agreement for the assertion that a refund had to be claimed within 12 months of making the agreement, but that the option had to be exercised with­in a reasonable period of time and Awan failed to do so. Awan appealed.

The Ontario Court of Appeal dismissed the appeal.

Contracts - Topic 2058

Terms - Implied terms - Termination - Notice of - CIBC offered investor immi­gration advice to its customers - As a result of such advice, Awan invested $250,000 in Amnicon through a joint venture on March 26, 1987 - Quorum managed the joint venture - The joint venture agreement gave Awan the option of an investment refund if he did not receive a Canadian immigrant's visa within 12 months of the agreement - Awan was denied a landed immigrant visa - By De­cember 1988, Amnicon faced bank­ruptcy -Around the middle of 1989, Amnicon was insolvent - On June 12, 1989, Awan re­quested a refund - Quorum denied the request - Awan sued Quorum and CIBC - The trial judge interpreted the refund provision and held that the option had to be exercised within a reasonable period of time and Awan failed to do so - The On­tario Court of Appeal upheld the decision.

Counsel:

Mark L.J. Edwards (Beard, Winter), for the plaintiff/appellant.

This appeal was heard by Doherty, Abella and O'Connor, JJ.A., of the Ontario Court of Appeal. The Court of Appeal delivered the following decision which was endorsed on the appeal record and filed on June 11, 1999.