The Last Resort: Jail

  • September 23, 2015

Trans-High Corporation v. Hightimes Smokeshop and Gifts Inc., 2015 FC 1104 (Fothergill, J.)

September 23, 2015

Kevin Sartoria and James Green of Gowling Lafleur Henderson LLP for the Applicant Trans-High Corporation
No appearance for the Respondent Hightimes Smokeshop and Gifts Inc.

On June 18, 2015, the Respondent and its officer Mr. Muhammad plead guilty to 5 counts of contempt after having failed to respect a Federal Court decision rendered on November 26, 2013 by Mr. Justice Manson (the “Judgment”). In its contempt order, the Court provided that failure to pay all the awarded damages, costs as well as a reduced penalty within 30 days would result in the imprisonment of Mr. Muhammad (the “Contempt Order”). The Court noted that the Respondent and Mr. Muhammad were well aware of Justice Manson’s judgment as well as the Contempt Order.

Having not received the amounts owed, the Applicant brought an ex parte motion and sought the imprisonment of Mr. Muhammad as provided for in the Contempt Order.

The Court concluded that this was not a case where imprisonment should be avoided because a defendant does not have the ability to pay. The Court indicated that it had no doubt that the Respondent was in a position to pay the amounts but simply refused to do so, thus defying the authority of the Court. The Court found that imprisonment was necessary to maintain public confidence in the judicial system and made it clear that Mr. Muhammad was not being imprisoned for failure to pay its debts but for deliberately refusing to comply with the Contempt Order.

As such, the Court issued a warrant of commital for the arrest and imprisonment of Mr. Muhammad for a period of not less than 14 days and ordered that Mr. Muhammad remain in jail until all fines, costs and damages owed under the Contempt Order and by the Judgment are paid.

The Applicant was awarded $4,000 in costs on a solicitor-client basis.

By: Cindy Bélanger, Legault Joly Thiffault