purchase of an immoveable residential complex (Property) in the city of Saguenay. The
loan was secured by a hypothec in favour o Peoples.
While there were separate proceedings for the receivership of Portage, the present
court file was initiated by Peoples against the Defendants Jacob Berger, Abraham
Iczkovits, and 6811728 Canada Inc. (681 or General Partner4) seeking to recover
$4,208,000 allegedly due by them as guarantors of the loan to Portage.
 In addition to suing the Defendants Messrs. Berger and Iczkovits, and 681,
Peoples is also suing a group of defendants it refers to as the “Beneficial Owners”
(known under the Master Agreement’s Schedule B as “Real Owners”, the term is used
interchangeably with the latter in this judgment5) on the basis of the Master Agreement,
a group of 24 parties6 made up of individuals,7 numbered companies, and a family trust.
 As an aside, it should be noted that the list of Real Owners at Schedule B of the
Master Agreement is not to be conflated with the list of Real Owners appearing at pages
1-3 of the Master Agreement, despite the same nomenclature, since the latter list contains
the names of two people who do not appear in the list in Schedule B and Peoples’ list of
Beneficial Owners, Messrs. Joseph Grossman and Ben Zion Schwartz. There will be
more discussion about the various subsets of parties below.
 Peoples claims a total of $7,379,850.49 against the Beneficial Owners, the sum
being divided according to the alleged proportionate share of liability of each of the
 The Master Agreement essentially purports to be a counter letter within the
meaning of articles 1451-52 of the Civil Code of Québec (CCQ), and Peoples seeks to
avail itself of it in its action against the Real Owners. The Master Agreement is also
invoked in the various other actions within the Court file.
 The Master Agreement is the third in a trilogy of prête-nom agreements covering
the 2010-2016 period (collectively, Counter Letters) and creating what is referred to in
the proceedings as a “tiered prête-nom system”,8 such that, in 2010, when Portage acted
This party is unrepresented in the proceedings and it is not suing Mtre. Derhy. It is the general partner
It should be noted that Peoples is suing an individual, Liba (Winternitz) Sanders, who actually is not a
party to the Master Agreement and does not appear on the list of Real Owners contained in Schedule
B to the Master Agreement. In its Re-Amended Demand at para 14, in the table of Beneficial Owners,
Peoples lists her on the same line as Mr. Chaim Sanders, her husband, who is a party to the Master
Agreement and appears in Schedule B.
Schedule B of the Master Agreement contains a list of 23 Real Owners, but the missing party, Boruch
Moses Rosenberg, appears in the list of Real Owners at the beginning of the document, his name
having been handwritten.
The list of Real Owners includes Messrs. Berger and Iczkovits. They have multiple statuses under the
Master Agreement and in the proceedings since they are defendants to the suit by Peoples as
guarantors of the loan granted by Peoples, they are among the Real Owners under the Master
Agreement, and they are “First Level Nominees” for the Real Owners under the Master Agreement.
See e.g. Declaration of Forced Intervention in Warranty against Mtre. Derhy at para 7.