Question

Question: Please analyze all the legal issues that arise in Jeremy’s situation. Explain thoroughly.

Jeremy and Daniel were cousins, and were heavily involved with gambling. They had made a significant amount of money, but one day, lost $50,000 at a private party. Unfortunately, they owed this money to someone who was linked to criminal activity, so they were very worried about how they would come up with this money. They decided to speak to their grandmother, and convinced her to mortgage her home and give them the $50,000. They told her that, if she didn’t do this, they would both be killed. Jeremy and Daniel also promised her that they would pay her off within 5 years, since they were both graduating from medical school soon and would be earning enough to pay her. Scared for grandsons’ lives, their grandmother agreed and arranged a mortgage for $50,000.

Jeremy and Daniel paid the debt with the money obtained from their grandmother, and then continued their gambling habits. They eventually made some money and started their jobs, but they never repaid their grandmother. Their grandmother found herself in significant financial difficulty. She lived on government subsidies and did not own any significant assets other than her home. She kept asking Jeremy and Daniel to pay her back, and unfortunately, they just ignored her. The grandmother was unable to pay the bank, who threatened to foreclose on the mortgage and take her house.

Jeremy was enjoying his new lifestyle as a doctor, and decided to buy an expensive car. When he obtained car insurance, he decided to lie about previous accidents, and told the insurance company that he had never been in a car accident before. Actually, he had been in 3 accidents previously. By withholding this information, his insurance premiums were much cheaper. Several months after Jeremy bought his car, he got into a car accident which was not his fault. Someone was texting while driving, and hit his car from behind while he was at a stop sign.   Since the other driver was going quite fast, the impact was strong and the injuries to both Jeremy and the car were serious. Unfortunately, the driver of the other car quickly sped away after the accident, and the police were never able to identify him.

Just before the accident, Jeremy and his partner Terry had purchased a new house in downtown Toronto. They had moved about 5 weeks prior to the accident. As Jeremy was recovering from the accident, he spent a considerable amount of time at home. He noticed that every time he went into the basement, his asthma acted up and he felt unwell. Once he was feeling better, he decided to get a contractor to inspect the basement, and discovered that there was mould throughout the basement behind the drywall. According to the contractor, the vendors of the home must have known about the mould, as there were signs of significant flooding. Also, the mould had been there for some time, and the drywall was new – implying that the vendors simply drywalled the basement before selling the house.

Daniel was also finding himself in a difficult situation at this time. He had bought a Ferrari from one of his gambling buddies, who was involved in illegal activity. One day, he received a phone call from the police indicating that the Ferrari was a stolen vehicle. He called the person who had sold it to him (Fabio) and Fabio threatened to kill him if he revealed the fact that Fabio had sold him the car. He had no idea what to do. The police picked up the Ferrari from Daniel and impounded the vehicle.

Daniel decided to purchase a much more reasonably priced car directly from a car dealer. He ordered the car in red, and was shocked when he came to pick it up, as it was blue. The car dealer told him that there were only blue cars available for the next six months, and that at the price he was given, he should take the blue car. When Daniel checked the agreement he had signed, it said that the car would be red. He told the car dealer that he would not take the blue car, and the dealer threatened to sue him.

Daniel desperately needed a car for his work, as he was part of a group of doctors that travelled to different locations to provide medical services. While his car issues were being sorted out, he decided to lease a car. He paid a certain amount up front, in order to benefit from a lower lease rate. On the day that he was supposed to pick up his leased car, lightning struck the car in the dealer’s parking lot and it burst into flames. He was furious and told the dealer that they had to provide him with another car, for the same price, on the same day. The dealer apologized and said that they had no other comparable vehicles for lease at that time. They suggested he enter into another lease agreement for a more expensive car if he needed one right away. At this point, Daniel decided to take public transit.

Answer 1

Legal Issues arising in the given case:

1. "Their grandmother found herself in significant financial difficulty. She lived on government subsidies and did not own any significant assets other than her home. She kept asking Jeremy and Daniel to pay her back, and unfortunately, they just ignored her. The grandmother was unable to pay the bank, who threatened to foreclose on the mortgage and take her house."

This statement above involves breaching of a contract. Although, oral contracts are difficult to be prove, they are still, however, enforceable. In this case, Jeremy and Daniel forced their grandmother to mortgage loan and they promised to repay her bank in 5 years, However, they did not value their oral contract.

2. "When he obtained car insurance, he decided to lie about previous accidents, and told the insurance company that he had never been in a car accident before."

It is illegal to lie while obtaining insurance contracts. Just because your insurance is cheaper because of a clean track record, it is not advisable to lie while obtaining an insurance. If the lie is doscovered by the insurance agency, it is subjected to termination of the contract and remission of the privilege to claim insurance money.

3. "Unfortunately, the driver of the other car quickly sped away after the accident, and the police were never able to identify him."

According to traffic rules, hit and run is a criminal and civil offence. Additionally, use of cellphones while driving is also a civil offence. This also gives a rise to traffic rules violation.

4. "According to the contractor, the vendors of the home must have known about the mould, as there were signs of significant flooding. Also, the mould had been there for some time, and the drywall was new – implying that the vendors simply drywalled the basement before selling the house."

While dealing in contractual agreements such as sale of immovable property, it is the obligation of the seller to disclose all material facts and details related to the property before finalising the deal. In this case, since it is a high probability that the sellers invariably hid details relating to moulds, it is an offence.

5. "Fabio threatened to kill him if he revealed the fact that Fabio had sold him the car."

The concept of threating to kill accounts for criminal intimadation that is considered illegal in the eyes of the law.

6. " When Daniel checked the agreement he had signed, it said that the car would be red. He told the car dealer that he would not take the blue car, and the dealer threatened to sue him."

Even though the dealer threatened to sue him, since, the agreement clearly stated that the car has to be red in colour, it is the dealer who has not complied with the terms of the contract.

7. "The dealer apologized and said that they had no other comparable vehicles for lease at that time. "

Since the lessor did not comply with his obligation to provide a car on lease subject to the terms and conditions of the lease agreement, Daniel is subjected to an allowance for an award for damages.