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Cassels Brock Litigators Defeat Inappropriate Debt Collection Application

Published: 10/17/2016

Team: Christopher Horkins, David Kelman

On October 17, 2016, Justice Myers heard the application of MRP Recruiting Inc. v. MOPALS.COM Inc. et al, in which the Applicant recruiting firm sought to prosecute multiple unrelated debt collection claims (each of which was within the monetary jurisdiction of the Small Claims Court but, in the aggregate, exceeded the jurisdiction of the Small Claims Court) by way of application before the Ontario Superior Court of Justice. In granting MOPALS’s motion to stay the proceedings indefinitely, Justice Myers found that joining multiple claims together against unrelated parties, each with nothing in common other than a similar form of contract, and proceeding by way of application, would not promote efficiency, convenience or the fair, proportional administration of justice; rather, he likened the inappropriate strategy to Visa or Mastercard bringing “giant applications against all of their small defaulting cardholders with each able to assert separate facts and legal responses.”


With regard to the jurisdiction of the Ontario Superior Court to hear the matter, Justice Myers noted that multiple separate small claims “do not amount to one big claim”, and the “policy of the province is for small matters to be heard in the Small Claims Court in a manner consistent with equity and good conscience.” In addition to granting MOPALS’ motion to stay proceedings indefinitely, Justice Myers ordered the Applicants to pay a significant cost award to MOPALS to demonstrate the court’s disapproval of such a procedural tactic. 
 

Chris Horkins and David Kelman of Cassels Brock & Blackwell acted for MOPALS in MRP Recruiting Inc. v. MOPALS.COM Inc. et al. A transcript of the decision can be found here..