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.

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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:
TALON INTERNATIONAL INC.
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").

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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.

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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

. .
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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

..
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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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TALON INTERNATIONAL INC.
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