STATEMENT OF CLAIM

Court File No.: 

ONTARIO 

SUPERIOR COURT OF JUSTICE 

BETWEEN: 

VICTORIA MOSKOVSKA YA 

Plaintiff 

(Courl seaf) 

-and- 

TALON INTERNATIONAL INC. 

Defendant 

STATEMENT OF CLAIM 

TO THE DEFENDANT 

A LEGAL PROCEEDING HAS BEEN COMMENCED AGAINST YOU by the plaintiff. 

The claim made against you is set out in the following pages. 

IF YOU WISH TO DEFEND THIS PROCEEDING, you or an Ontario lawyer acting 

for you must prepare a statement of defence in Form 18A prescribed by the Rules of Civil 

Procedure, serve it on the plaintiff's lawyer or, where the plaintiff does not have a lawyer, 

serve it on the plaintiff, and file it, with proof of service, in this court office, WITHIN 

TWENTY DAYS after this statement of claim is served on you, if you are served in Ontario. 

If you are served in another province or territory of Canada or in the United States of 

America, the period for serving and filing your statement of defence is forty days. If you are 

served outside Canada and the United States of America, the period is sixty days. 

Instead of serving and filing a statement of defence, you may serve and file a notice 

of intent to defend in Form 18B prescribed by the Rules of Civil Procedure. This will entitle 

you to ten more days within which to serve and file your statement of defence. 

IF YOU FAIL TO DEFEND THIS PROCEEDING, JUDGMENT MAY BE GIVEN 

AGAINST YOU IN YOUR ABSENCE AND WITHOUT FURTHER NOTICE TO YOU. IF 

YOU WISH TO DEFEND THIS PROCEEDING BUT ARE UNABLE TO PAY LEGAL FEES, 

LEGAL AID MAY BE AVAILABLE TO YOU BY CONTACTING A LOCAL LEGAL AID 

OFFICE.

-2- 

Date: May , 2012 

F. Youssef 

Registrar 

Issued by-.,.---,--,------ 

Local registrar 

Address of court office: 

393 University Avenue, 10 1 h Floor 

Toronto, ON M5G 1 E6 

TO: 


553 Basaltic Road 

Concord, Ontario M4K 4W8

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CLAIM 

1. THE PLAINTIFF CLAIMS: 

a) A Declaration that the Defendant is in breach of the Agreement of Purchase 

and Sale described below (the "APS"); 

b) A declaration that the APS is at an end and is no longer of any force or 

effect; 

c) Judgement for the return of the deposit paid by the Plaintiff to the Defendant 

in the total amount of $275, 100.00; 

d) In the alternative, damages for breach of contract in the amount of 

$300,000.00; 

e) prejudgment interest and postjudgment interest pursuant to the provisions of 

the Courts of Justice Act, R.S.O. 1990, c.C.43, as amended; 

f) any harmonized sales tax or goods and services tax that may be payable on 

any amounts pursuant to Bill C-62, The Excise Tax Act, R.S.C. 1985, c. E- 

15, as amended, or any other legislation enacted by the Government of 

Canada or the Government of Ontario; 

g) her costs of this action on a substantial indemnity basis; and 

h) such further and other relief as this Honourable Court may deem just. 

The Parties 

2. The Plaintiff is an individual residing in the Province of Ontario. 

3, The Defendant, Talon International Inc., is a corporation incorporated under the 

laws of the Province of Ontario, and was at all material times, the vendor of the 

condominium units in a project known as the Trump International Hotel and Tower 

located in Toronto (''Trump Tower").

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The Agreement of Purchase and Sale 

4. On or about March 4, 2008, the Plaintiff entered into an Agreement of Purchase and 

Sale with the Defendant. The APS was for the purchase by the Plaintiff of the 

condominium unit known as Suite No. 3806 (Resident Unit No.6, Level No. 5) in the 

Trump Tower. 

5. The APS contains the following material terms: 

(a) The purchase price for the condominium unit is $1 ,834,000.00; 

(b) 

(c) 

(d) 

A series of four deposits are payable at intervals commencing with the 

execution of the APS; 

Pursuant to paragraph 2(a) of the APS, occupancy of the condominium unit 

would be on March 21, 2011 or such extended or accelerated date that the 

units were substantially complete for occupancy in accordance with 

paragraph 14 of the APS; 

The Defendant had certain rights to extend the closing date on delivery of the 

notices required by paragraph 14 oftheAPS. 

6. Pursuant to the APS, the Plaintiff paid deposits to the Defendant in the total amount 

of $275,100.00, which represents the first and second deposit amounts under the 

APS. 

Breach of Contract 

7. Pursuant to the APS, the tentative closing date was March 21, 2011 ("Tentative 

Closing Date").

-5- 

8. The Defendant unilaterally delayed the closing date on three occasions for a total of 

378 days. 

9. Pursuant to the Condominium Act and the ONHWP Act, the landlord was obligated 

to establish a confirmed closing date by notice to the Purchasers given within 30 

days after completion of the roof assembly. The Defendant did not provide the 

aforesaid notice to the Plaintiff within the required period of lime or at all. 

10. By reason of the failure of the Defendant to deliver the notice referred to in the 

preceding paragraph, the tentative closing date became the confirmed closing date. 

11. The Defendant attempted to postpone the closing date by requesting the Plaintiff to 

sign agreements amending the closing date, and the Plaintiff signed several such 

amendments. The Plaintiff received no consideration whatsoever for signing the 

said amendments. 

12. On or about November 16, 2010, the Defendant extended the closing date from 

March 11, 2011 to December 15, 2011, being 269 days from the Tentative Closing 

Date. 

13. On or about September 22, 2011, the Defendant again extended the closing date to 

January 31,2012 (being 326 days from the Tentative Closing Date). 

On or about January 16, 2012, the Defendant yet again extended the closing date 

to April 2, 2012.

-6- 

15. The closing date was postponed by the Defendant beyond the maximum time 

allowed by the Condominium Act the ONHWP Act and the APS. 

16. The Defendant failed to obtain from the City of Toronto consent to occupancy by 

April 2, 2012. Without the consent of the City of Toronto, occupancy of the unit is 

not permitted in accordance with the legal requirements of the City ofToronto of the 

condominium unit. Accordingly, the Defendant failed to deliver to the Plaintiff a unit 

that could be occupied by April 2, 2012. 

17. As of April 2, 2012, the Defendant was unable to close and was in breach of the 

APS. 

18. Pursuant to paragraph 14(a) of the APS and the Ontario New Home Warranties 

Plan Act, R.S.O. 1990, c. 0.31 ("ONHWP Act"), in effect at the time of the execution 

of the APS, the Defendant is required to fix and provide written notice to the Plaintiff 

of the Confirmed Closing Date within 30 days after the completion of the structural 

roof assembly. The Defendant failed to fix the Confirmed Closing Date and notify 

the Plaintiff of the Confirmed Closing Date as required, and is therefore in breach of 

the APS and the ONHWP Act. 

19. Paragraph 14(d) of the APS provides that, 

If the vendor shall be unable to complete this transaction by the 

Confirmed Closing Date for any reason whatsoever, the 

Vendor may extend the Confirmed Closing Date: 

(i) 

once, not to exceed one hundred and twenty (120) days, 

provided written notice is given to the Purchaser at least

. . 

-7- 

sixty-five (65) days before the Confirmed Closing Date; or 

(ii) 

once, not to exceed fifteen (15) days, provided written 

notice is given to the Purchaser at least thirty-five (35) 

days before the Confirmed Closing Date. 

20. By unilaterally extending the closing date three times for a total of more than 120 

days and an additional15 days, the Defendant is in breach of paragraph 14(d) of 

!heAPS. 

21. The Condominium Act, 1998, S.O. 1998, c. 19, stipulates certain covenants that are 

to be implied in every agreement of purchase and sale of a proposed unit, including 

the APS in question. Sections 78(1) and 79 of the Condominium Act, 1998, S.O. 

1998, c. 19, provide: 

Implied covenants 

78. (1) Every agreement of purchase and sale of a proposed 

unit entered into by a declarant before the registration of the 

declaration and description that creates the unit shall be 

deemed to contain the following covenants by the declarant: 

1. If the proposed unit is for residential purposes, a covenant to 

take all reasonabl.e steps to sell the other residential units 

included in the property without delay, except for the units that 

the declarant intends to lease. 

2. A covenant to take all reasonable steps to deliver to the 

purchaser without delay a deed to the unit that is in 

registerable form. 

Duty to register declaration and description 

79. (1) A declarant who has entered into an agreement of 

purchase and sale of a proposed unit shall take all reasonable 

steps to complete the buildings required by the agreement 

subject to all prescribed requirements and to register, without

.. 

-8- 

delay, a declaration and description in respect of the property 

in which the proposed unit will be included. 

22. The Defendant has failed to take all reasonable steps to complete the condominium 

project, to register it, and deliver the unit to the Plaintiff without delay. Therefore, the 

Defendant is in breach of its implied covenants under the APS. 

23. The Plaintiff has not waived any aspect of the Defendant's default under the APS. 

24. The Plaintiff pleads that the APS has come to an end as a result of the Defendant's 

default, and the Plaintiff is entitled to return of the deposits paid. 

25. The Plaintiff proposes that this action be tried at the City of Toronto, in the Province 

of Ontario. 

Date of issue: May/ , 2012 

LANDY MARR KATS LLP 

Barristers & Solicitors 

2 Sheppard Avenue East, Suite 900 

Toronto, Ontario M2N 5Y7 

Keith M. Landy (16906F) 

AnnaS. P. Wong (LSUC #59131K) 

Tel.: 416-221-9343 

Fax: 416-221-8928 

Lawyers for the Pia intiff

VICTORIA MOSKOVSKA YA 

Plaintiff 

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Defendant 

Court File No. (_ V- },}- ~')J......G/S-1 

ONTARIO 

SUPERIOR COURT OF JUSTICE 

PROCEEDING COMMENCED AT 

TORONTO, ONTARIO 

STATEMENT OF CLAIM 

LANDY MARR KATS LLP 

Barristers & Solicitors 

900-2 Sheppard Avenue East 

Toronto, Ontario 

M2N 5Y7 

Keith M. Landy (16906F) 

Anna S.P. Wong (59131K) 

Tel: (416) 221-9343 

Fax: (416) 221-8928 

Lawyers for Plaintiff

STATEMENT OF CLAIM

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