An Iranian businessman has won a $5.6 million West Vancouver home following a long-running legal dispute over the property. On September 25, B.C. Supreme Court Justice Lisa Hamilton ruled in favour of Ali Dolatshah, awarding him the home and $835,000 in rent and taxes that had been collected by the defendants.
Hamilton noted in her decision that Dolatshah, a successful businessman in Iran, had hoped to move to Canada with his family and pursue business opportunities. In 2017, through a mutual acquaintance, he met Tirdad Moghari, a West Vancouver businessman with a background in construction. Moghari referred Dolatshah to a consultant to help with immigration and sold him a stake in his company for US$300,000 to facilitate the process, which ultimately did not succeed.
Dolatshah expressed interest in Canadian real estate and learned that Moghari was completing a home on Mathers Avenue. In June 2017, Dolatshah told Moghari he wanted to buy the property. Moghari and his wife, Michelle Graham, had purchased the lot in 2015 for $1.5 million and registered the home under Michelle and her mother Levy Graham to qualify for a mortgage. Moghari’s name was not on the title because he wanted to protect the property from potential creditors.
Moghari agreed to sell the Mathers Avenue property to Dolatshah for $5.58 million in June 2017, though no written agreement existed. Between June and October 2017, Dolatshah transferred the full amount to Moghari. The property was removed from the market in August 2017, and Moghari sought advice from his longtime lawyer regarding the deal.
During the trial, conflicting testimony emerged between Moghari and his former lawyer. The lawyer testified that Moghari wanted to protect Dolatshah’s interests from creditors and suggested registering a mortgage in Dolatshah’s favour for $5.58 million. Dolatshah never signed or instructed the mortgage, and due to a language barrier, he did not fully understand the document. The mortgage was meant solely to safeguard his investment, the lawyer said, while the actual agreement was a property sale, not a loan.
Moghari, however, argued that Dolatshah had lent the money and never completed the purchase, despite repeated expressions of interest. In August 2021, Moghari requested that Dolatshah pay $430,000 toward GST and property transfer tax, which Dolatshah paid. When Moghari later asked for another $89,000 for additional expenses and the property was still not transferred, Dolatshah believed he had been defrauded. The property title remained under Michelle Graham’s name.
The defendants argued that the lawsuit was an abuse of process, claiming Dolatshah first pursued mortgage enforcement and later filed a separate claim alleging the mortgage was a sham. Justice Hamilton rejected this argument, noting that inconsistent pleadings alone did not undermine the administration of justice. There was no evidence that Dolatshah had simultaneously asked the defendants to defend the foreclosure while pursuing his new claim, and no risk of conflicting results existed.
Hamilton acknowledged credibility issues with both Dolatshah and Moghari but found the testimony of Moghari’s former lawyer reliable. The judge concluded that there was no “meeting of the minds” regarding the mortgage, and the defendants had been unjustly enriched by receiving the $5.58 million without transferring the property. Hamilton ordered the property be transferred to Dolatshah and ruled he should be repaid the $430,000 in taxes and an additional $405,000 in net rental income.
The ruling highlights the importance of clear agreements in real estate transactions, particularly in international deals where language barriers and informal arrangements can complicate matters. Justice Hamilton’s decision ensures that Dolatshah, who had fully funded the purchase, now has legal ownership of the West Vancouver property.
The case also illustrates how legal disputes can arise when parties rely on verbal agreements or protective measures, such as registering mortgages for reasons other than loans. Hamilton’s decision underscores that courts will examine intent and supporting evidence carefully, favoring documentation and credible testimony.
Dolatshah’s victory secures not only the valuable West Vancouver property but also the associated financial compensation, covering rent and tax payments that were improperly collected by the defendants. The judgment demonstrates the B.C. Supreme Court’s willingness to uphold fairness in complex property disputes and protect investors from potential exploitation.
With the property now legally transferred, Dolatshah can proceed with his plans in Canada, fulfilling his goal of establishing residence and engaging in business ventures. The case serves as a reminder for real estate buyers, especially international investors, to ensure agreements are clearly documented, legally reviewed, and properly executed to avoid prolonged legal battles.
