Background:

• The case arises from a dispute over the distribution of sale proceeds from an investment property at 15842 Horseshoe Hill Road, Caledon, Ontario.
• Ten investors, including the Plaintiffs and Defendants, purchased the property intending to improve and sell it for profit.
• A disagreement emerged regarding the shares of net sale proceeds owed to certain investors.
• A related counterclaim alleged damages from a caution registered by the Plaintiffs on the property title.

Key Issues:

1. Entitlement to Sale Proceeds

   • The Plaintiffs claimed a one-third share of the proceeds based on their financial contributions.
   • The Defendants disputed the inclusion of certain Plaintiffs and argued for proportional distribution to recognized investors.

2. Effect of Promissory Note

   • The Defendants argued that a $40,000 promissory note signed by one Plaintiff limited his entitlement.

3. Claim for Lost Rental Income

   • The Plaintiffs sought compensation for rent that could have been earned if the property had been rented.

Findings:

• Entitlement: Kamaljit Chauhan was awarded a one-tenth share of the net proceeds, reduced by his $40,000 debt and interest. Gurbir Chauhan was not deemed an investor and was excluded from any entitlement.
• Promissory Note: The $40,000 debt, with 6% interest, was subtracted from Kamaljit Chauhan’s share.
• Rental Income: The court found insufficient evidence to award damages for lost rent.

Ruling:

• Kamaljit Chauhan was awarded $8,237.82, including prejudgment interest.
• No damages were awarded for lost rental income.
• The Defendants’ counterclaim was dismissed.

Additional Notes:

• Distribution of any remaining funds held in court is deferred pending cost determinations.
• Each investor is individually responsible for capital gains taxes on their share.

Cost Submissions:

• Parties are encouraged to agree on costs. Deadlines for submissions were set if no agreement is reached.