HAMEED AL-TAI o/a GMB AUTO SALE SHOPPE ... - Debbie Schlussel

Licence Tribunal 

Appeal d'appel en 

Tribunal matière de permis 

HAMEED AL-TAI o/a GMB AUTO SALE SHOPPE and HUSSEIN DABAJA 

AN APPEAL FROM A PROPOSAL OF THE REGISTRAR UNDER 

THE MOTOR VEHICLE DEALERS ACT, R.S.O. 1990, Chapter 

M.42 AS AMENDED TO REVOKE REGISTATION 

TRIBUNAL: DOUGLAS R. WALLACE, VICE-CHAIR 

APPEARANCES: AVIVA R. HARARI, representing the Registrar, Motor Vehicle 

Dealers Act 

DATE OF 

HEARING: August 15, 2006 Windsor 

BACKGROUND 

REASONS FOR DECISION AND ORDER 

This Hearing arises out of a Notice of Proposal issued by the Registrar on April 6, 2006 

seeking to revoke the registrations of the Hameed Al-Tai o/a GMB Auto Sale Shoppe as 

a Dealer and the individual Applicant, Hussein Dabaja as a salesperson under Section 6 

of the Motor Vehicle Dealers Act. 

The reason for the Registrar’s Proposal is that the past conduct of the Registrants is 

inconsistent with the intention and objective of the Act, namely that the business they 

are engaged in be carried on in accordance with the law and with integrity and honesty. 

The Proposal sets out the particulars relied on as follows: 

1. Hameed Al-Tai o/a GMB Auto Sale has been registered as a motor vehicle dealer 

since on or about August 22, 2005. The Dealer is registered on Terms and 

Conditions. 

2. Hussein Dabaja, also known as Sam, at all material times was registered as a 

motor vehicle salesperson to Hameed At-Tai o/a GMB Auto Sale.

3. On or about January 7, 2006, Dabaja, on behalf of the dealer purchased motor 

vehicles from Guelph Toyota. A cheque drawn on an account in the dealer’s name 

was given to Guelph Toyota as payment for the vehicles purchased, however the 

cheque was returned as non-negotiable. 

4. A replacement cheque was provided to Guelph Toyota, drawn on the dealer’s 

account. The second cheque was returned as non-negotiable. 

5. On or about January 3, 2006, Dabaja, on behalf of the dealer, purchased motor 

vehicles from Leslie Motors Ltd. 

6. Payment for the vehicles purchased by the dealer from Leslie Motors Inc. was 

made by cheque drawn on the dealer’s account. The cheque was returned as nonnegotiable. 

A replacement cheque drawn on the dealer’s account was also 

returned as non-negotiable. 

The Respondent provided Further Particulars of the reasons for his Proposal to revoke 

both registrations by Notice dated July 17, 2006 as follows: 

1. On or about May 30, 2006 the Dealer purchased a 2004 Infinity FX45 from 

VJLRH London Inc. The cheque issued for payment of the vehicle did not clear 

the bank and was returned as non-negotiable. 

2. On or about May 30, 2006 the Dealer purchased a 1998 BMW from Grand 

Touring Cars. The cheque issued for payment of the vehicle did not clear the 

bank and was returned as non-negotiable. 

3. The Dealer has breached clauses 5,6, 7 and 16 of his terms and conditions. 

4. Dabaja is operating as Windsor Auto Exchange without the benefit of registration. 

5. The Dealer has failed to respond to inquiries from the Registrar’s office. 

6. The Dealer purchased vehicles from Windsor Chrysler. The cheque initially 

issued by the Dealer for payment of the vehicles did not clear the bank and was 

returned as non-negotiable. 

7. The Dealer and Windsor Chrysler were ultimately able to resolve the issues with 

the intervention of the Registrar’s office. 

The Applicants filed a Notice of Appeal with the Tribunal on April 19, 2006 and 

submitted two filing fees. Counsel for the Applicant, Hameed Al-Tai, o/a GMB Auto 

Sale Shoppe faxed a letter to counsel for the Respondent on August 15, 2006 

purporting to abandon the appeal by Mr. Al-Tai. There was apparently no 

communication concerning this purported abandonment with the Registrar of the 

Tribunal. Neither Applicant appeared at the Hearing by counsel or in person. 

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THE EVIDENCE 

No evidence was adduced by the Applicants. 

Counsel for the Registrar called six witnesses and tendered a Book of Documents 

which was filed as Exhibit 4. 

Mark Leslie is a registered Dealer carrying on business as Leslie Motors Ltd. He was 

approached in January 2006 by Hussein (Sam) Dabaja who wished to purchase two 

vehicles on behalf of GMB Auto Sales. Agreement was reached for the sale of the 

vehicles for a total price of $13,482.00. As payment Mr. Dabaja presented him with a 

cheque in that amount drawn on the account of GMB Auto Sale Shoppe and signed by 

Hameed Al-Tai. When the cheque was returned unpaid due to insufficient funds he 

contacted Mr. Dabaja on four occasions obtaining repeated promises of payment. No 

payment was ever received and the vehicles have not been recovered. . 

Tony Moon is a registered salesman with Guelph Toyota. He reached agreement with 

Sam Dabaja on January 7, 2006 for the sale of three vehicles to GMB Auto Sales for a 

total price of $29,440.00. In return he received a cheque dated January 11, 2006 drawn 

on the account of GMB Auto Sale Shoppe and signed by Hameed Al-Tai. Both this 

cheque and a replacement cheque in the amount of $28,355.00 were returned as nonnegotiable. 

Contacts between Guelph Toyota and Mr. Dabaja resulted in apologies but 

no payment. The vehicles have not been recovered by Guelph Toyota. 

Mr. Rob Weber is registered and employed with Windsor Chrysler. He testified that 

Windsor Chrysler sold eight vehicles to GMB Auto Sales through its General Manager, 

Sam Dabaja in March 2006. Windsor Chrysler received payment of $16,700 leaving a 

balance of approximately $72,000.00 covered by dishonoured cheques. 

Armand Cavacas is a registered salesperson with Volvo Jaguar Land Rover of London. 

He testified that Sam Dabaja, acting on behalf of GMB Auto Sales, purchased and took 

delivery of a 2004 Infiniti motor vehicle from VJLRH London Inc. on May 30, 2006 for 

the total price of $44,940.00. The purchase was paid for by a cheque in this amount 

drawn on the account of Windsor Auto Exchange and signed by Mr. Hameed Al-Tai. 

The cheque was returned as non-negotiable. Although Sam Dabaja promised to make 

payment, no payment was ever received. 

Tim Houson is a registered salesperson with Grand Touring Cars in London. Sam 

Dabaja purchased a BMW for GMB Auto Sales from him in May, 2006 for $13,910.00. 

The cheque drawn on the account of Windsor Auto Exchange and signed by Hussein 

Al-Tai was not honoured by his bank. Grand Touring Cars was able to recover 

possession of the vehicle from the auto auction before it could be resold by GBM. 

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The final witness testifying on behalf of the Respondent was Yvonne Hallitt. Ms. Hallitt 

has been employed by the Ontario Motor Vehicle Industry Council (OMVIC) for ten 

years. She is currently the Administrator of the OMVIC compensation fund and Team 

Leader of the Complaints Department. She testified that OMVIC was created in 1997 to 

administer the Ontario Motor Vehicle Dealers Act with the primary purpose of protecting 

the public. 

It is her evidence that Hameed Al-Tai is currently registered as a dealer under the Motor 

Vehicle Dealers Act operating as GMB Auto Sale Shoppe. His registration is subject to 

terms and conditions entered into on August 22, 2005. In clause 31 of these terms and 

conditions Mr. Al-Tai acknowledges that “the Registrar may take further administrative 

action, including a proposal to revoke its registration, arising from any matters that have 

occurred or may occur related to honesty and integrity or financial position.” 

Ms. Hallitt spoke to both Hameed Al-Tai and Hussein Dabaja in February 2006 

concerning the complaints by Guelph Toyota and Leslie Motors. Mr. Al-Tai indicated he 

knew nothing about their complaints and that it was his usual practice to give Mr. 

Dabaja signed blank cheques to cover purchases. Once aware of the complaints Mr. Al- 

Tai failed to advise OMVIC of any steps taken to resolve them. 

Documents identified by Ms. Hallitt indicate that Mr. Dabaja is the sole proprietor of 

Windsor Auto Exchange Neither Mr. Dabaja nor Windsor Auto Exchange are registered 

as dealers under the Motor Vehicle Dealers Act. 

Based on this evidence the Tribunal finds as follows: 

1. Mr. Hussein (Sam) Dabaja made a practice of purchasing vehicles on behalf of 

GMB Auto Sale Shoppe by providing vendors with cheques which he knew or 

ought to have known would not be honoured. 

2. Mr. Hameed Al-Tai, operating as GMB Auto Sale Shoppe facilitated this practice 

by providing Mr. Dabaja with blank cheques and failed to take reasonable steps 

to stop the practice when he knew or should have known about it. 

3. Neither Mr. Dabaja nor Mr. Al-Tai took any steps to reimburse honest dealers for 

the losses they incurred as a result of relying on their good faith. 

4. The acts of Mr. Dabaja and Mr. Al-Tai were dishonest and showed a complete 

lack of integrity. 

5. The evidence presented on behalf of the Registrar fully supports the reasons 

given by the Registrar for proposing to revoke the registrations of both Hameed 

Al-Tai, operating as GMB Auto Sale Shoppe and Hussein Dabaja. 

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THE LAW 

Subsection 6(2) of the Act authorizes the Registrar to revoke the registration of a dealer 

or salesperson for any reason that would disentitle the registrant to registration under 

section 5 of the Act. Paragraph (b) of subsection 5(1) of the Act allows the Registrar to 

refuse registration where he finds that the past conduct of an individual applicant affords 

reasonable grounds to believe that the applicant will not carry on the business in 

accordance with laws and with integrity and honesty. 

APPLICATION OF THE LAW TO THE FACTS 

The Tribunal finds that the acts of the Applicants set out above constitute reasonable 

grounds for the Registrar to believe that the Applicants will not carry on their business 

under the Act in accordance with law, and with honesty and integrity. 

DECISION 

In accordance with the authority vested in it by subsection 7(4) of the Motor Vehicle 

Dealers Act the Tribunal directs the Registrar to carry out his proposal of April 6, 2006 

to revoke the registrations of Hameed Al-Tai, operating as GMB Auto Sale Shoppe and 

Hussein Dabaja. 

Counsel for the Registrar and most of the six witnesses called to give evidence incurred 

significant out-of-pocket expenses in attending the Hearing from out of-town. In light of 

the failure of either Applicant to attend the Hearing or to send a representative when 

proper notice of the Hearing was given, and in the absence of any notice prior to the 

opening of the Hearing that the Applicants would not be attending, the Tribunal 

exercising its discretion under Rule 14 assesses costs in the fixed amount of $800.00 

against each Applicant. 

Released August 30, 2006 

LICENCE APPEAL TRIBUNAL 

_________________________ 

Douglas R. Wallace, Vice-Chair 

Filename: 3525.mvda.Hameed Al-Tai o/a GMB AUTO Sale Shoppe and Hussein Dabaja 

The decision will also be available on Quicklaw at a later date. 

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HAMEED AL-TAI o/a GMB AUTO SALE SHOPPE ... - Debbie Schlussel

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