Question:  I am a 40-year-old woman.  I found myself quite depressed recently and made the mistake of going to a store and stealing some mascara.  They stopped me and called the police.  I haven't gone to court yet, but I received a letter from a big law firm saying they want $325 as settlement or else they are going to take me to small claims court.  I don't think I should have to worry about that on top of everything else.  What can I do?

 

Signed "Barbara," Ontario, March 2000*

 

Answer:   The store really has no basis for asking for the amount claimed.  I suspect the letter you are referring to is the exact same one I have seen on at least two occasions recently.  In one instance, a client of mine had the same experience:  She was charged with theft and I took care of obtaining diversion for her.  She then received a letter from a law firm.  In it, the writer refers to a recent Ontario case that allows the store to make a claim for damages.  What the writer doesn't say is the case, decided in 1997, awarded the store only $100 and not $325.

 

The court decision really stands for the principle that while retail establishments have the right to sue persons who steal from them, damages are limited to the actual loss from the specific theft, or if no actual loss, a nominal amount only, in that case, $100.  The store is not entitled to claim a pro-rated amount for its loss prevention program.

 

Questions and Answers at Golishlaw.com