Abby McGivney

The court considered an application under the Unconscionable Transactions Relief Act to set aside litigation loan agreements entered into by Chadwick Randy Kelly (by his litigation guardian and attorney for property) with BridgePoint Financial Services Limited Partnership I. The loans, used to purchase and retrofit a home after a catastrophic injury, had grown to over $1.1 million due to compounding interest.

The applicants argued the loans were excessive, harsh, and unconscionable.

The court found that, given the risk profile, the lack of alternative financing, and the terms of the agreements, the loans were not excessive or unconscionable under the Act.

The application was dismissed and costs awarded to the respondent.

The plaintiff, 2770095 Ontario Inc., brought a motion to set aside a prior decision dismissing its action as an abuse of process due to a champertous agreement, and to substitute Affinitas Medios de Pago S.A.P.I de C.V. as the plaintiff.

The court dismissed the motion, holding that its discretion to alter a judgment before entry is limited to technical corrections or preventing a miscarriage of justice.

The requested change was not technical, and no miscarriage of justice would occur, especially since the plaintiff had ample opportunity to amend its pleadings earlier and could still commence a new action.

Granting the relief would bring the administration of justice into disrepute given the plaintiff's prior abuse of process.

The plaintiff, 2770095 Ontario Inc., a special purpose vehicle incorporated one day before the assignment, brought an action to recover over $1 million in alleged missing funds from payment processing, assigned from Affinitas Medios de Pago S.A.P.I de C.V. The defendants, Maxwell Dean Morgan and Tricia Edwards, moved to dismiss the action, arguing the assignment was invalid due to champerty and maintenance.

The court found that the assignment of tort claims was champertous, as the plaintiff had no pre-existing commercial or financial interest in the litigation and was created solely to pursue the claim for profit.

The court dismissed the action as an abuse of process and set aside all interim and interlocutory orders, including Mareva injunctions and certificates of pending litigation.