The taxpayer had to pay an amount in settlement of the damages claim of the vendor and incurred related legal expenses as a result of a cancellation by the taxpayer of an agreement to purchase a building. After finding that these amounts were incurred on capital account, Paris J. rejected (at para. 22) a submission of the Crown that the taxpayer "would not be entitled to a capital loss because...the Appellant did not dispose of any property in 2001," and stated:
...the expenses may have been incurred as part of a disposition of the Appellant's right to purchase the building , and the disposition of that right may constitute a disposition of property within the meaning of section 38...