CCNC purchased a 2021 Lexus GX460 from Nice Leasing on February 11, 2020, for $77,227.50.
The vehicle was seized on February 16, 2020, as it was found to belong to Toyota Credit Canada due to identity fraud by the supposed seller, "François Arseneault."
CCNC alleged that Nice Leasing failed to verify ownership of the vehicle and sought annulment of the sale and a refund.
Claims:
CCNC argued the contract was invalid due to error (vice of consent), as it was misled into believing the seller had title to the vehicle.
Nice Leasing claimed it was diligent, had verified the property status via the RDPRM registry, and was itself a victim of fraud.
Nice Leasing also sought to shift liability to Prestige Gabriel, alleging negligence in their sale to the fraudster.
Court's Analysis:
Nice Leasing failed to act in good faith, transferring funds to the fraudster without sufficient verification and without informing CCNC of these transactions.
The court dismissed Nice Leasing’s claims against Prestige Gabriel, finding no proof of negligence or a causal link to damages.
Outcome:
The court annulled the sale and ordered Nice Leasing to refund $77,227.50 to CCNC with interest and costs.
CCNC was not required to return the vehicle, as it had been seized and auctioned by Toyota Credit Canada.
Nice Leasing's forced intervention against Prestige Gabriel was rejected with costs.
