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The Court of Appeal upheld the finding that a mortgage broker had actual and apparent authority to receive a payout and discharge a mortgage on behalf of a bare trustee.
The appellants, Olympia Trust Company and William Loucks, appealed a motion judge's order discharging a second mortgage on property owned by the respondents.
The respondents had borrowed funds from First Swiss Mortgage Corp., which assigned the mortgage to Olympia as bare trustee.
When the respondents refinanced and paid out the mortgage to First Swiss, the discharge was never registered and First Swiss misappropriated the funds.
The motion judge found that First Swiss was acting as Olympia's agent in receiving the payout and discharging the mortgage based on the terms of agreements between First Swiss and Loucks and the course of dealings between the parties.
The Court of Appeal upheld this finding, dismissing the appeal and awarding costs to the respondents.
