Nicola Di Iorio, centre, a lawyer who is the main nominee for the Liberal nomination in St-Leonard, is embraced by the Italian community in the St-Leonard borough of Montreal, May 11, 2015. Court records show Mr. Di Iorio was embroiled in a dispute over whether a $25,000 payment to contractors that was given without a paper trail included the cost of the new fireplace in his home.Christinne Muschi/The Globe and Mail
A Liberal candidate in Montreal once paid $25,000 in cash for home renovations without signing a contract laying out the sales taxes to be paid to the federal and provincial governments as part of the deal, court records show.
Lawyer Nicola Di Iorio, who is running for Justin Trudeau's team in Saint-Leonard-Saint-Michel, subsequently got embroiled in a dispute over whether the payment – done as part of an oral contract – included the cost of the new fireplace in his home.
The matter landed in front of the Quebec Court, where Mr. Di Iorio argued that the $25,000 cash payment covered the cost of the three-sided gas fireplace. But the judge ruled against Mr. Di Iorio and forced him to pay $4,063.50 to the store that had delivered the fireplace, stating that his version of events lacked credibility.
Mr. Di Iorio argued in court he had played no part in buying the fireplace, but his secretary at the law firm where he worked had twice been in contact with the store in relation to the purchase, the ruling said.
Click here for a link to the ruling in French.
Asked about the renovations, Mr. Di Iorio said in a written statement to The Globe and Mail that "at the request of the contractor, I made the payment in cash."
"The amount included the taxes that the contractor had to pay," he said, adding he asked the contractor to "follow all the rules" in handling the money.
Contractor Daniel Siciliano, who oversaw the work but called on Mr. Di Iorio pay for the fireplace himself, was reached by phone but did not want to comment on the matter.
The NDP, which is leading in the polls in Quebec, said the dispute raises questions about Mr. Di Iorio's ethics.
"I don't know anyone who would give $25,000 in cash to a contractor without asking for a receipt," said Alexandre Boulerice, who is running to retain his seat of Rosemont-La Petite-Patrie in Montreal. "Where did the money come from? Why is there no paper trail? Did Mr. Di Iorio try not to pay taxes? All of this is very strange."
Mr. Di Iorio won the Liberal nomination in Saint-Leonard-Saint-Michel in June, after securing the support of the major figures of the city's Italian community. The riding is a traditional Liberal stronghold, but the nomination was up for grabs after the retirement of long-time Liberal MP Massimo Pacetti, who was hit with allegations of harassment last year and had been sitting as an Independent.
The Liberal Party said it was informed of the dispute between Mr. Di Iorio and Foyers-Dépôt Inc. – the company that sold the fireplace – as part of the "green-lighting" process by which all candidates are vetted.
"Mr. Di Iorio paid the required amounts to the plaintiff in this matter. The matter has been settled," Liberal spokesman Olivier Duchesneau said.
In her 2011 ruling, Judge Brigitte Gouin said she could not uphold Mr. Di Iorio's version of events, given "his contradictory testimony in which there were many hesitations and contradictions."
Mr. Di Iorio told the court that the $25,000 payment to Mr. Siciliano included "labour, materials and other accessories, including the fireplace."
Still, the judge said Mr. Di Iorio's secretary at his law firm sent at least two e-mails in relation to the fireplace to Foyers-Dépôt, in which its cost was clearly pointed out. On the invoice, the contact person was listed as Mr. Di Iorio's secretary, with her phone number at her office.
"One has to conclude, despite the defendant's categorical statements, that his secretary and legal assistant, Louise Huet, was in contact with the plaintiff and negotiated the purchase," the ruling said.
Judge Gouin added that while Mr. Siciliano was available to testify, he was never called by Mr. Di Iorio's legal team.
Mr. Di Iorio rejected the notion his testimony was not credible, stating the audio recordings of the hearing show there were "no contradictions" in what he told Judge Gouin.
An expert in labour law, Mr. Di Iorio came to public attention after his daughter spent a month in a coma after a car accident. She was a passenger in the vehicle, which was driven by someone who had been drinking.
Mr. Di Iorio participated in the launch of Cool Taxi coupons, which can be used to get a cab after a night out.