The defendant moved for the release of proceeds held in trust from the sale of her home.
The plaintiffs had previously obtained a Certificate of Pending Litigation (CPL) on an ex parte motion, claiming an interest in the property based on an alleged agreement of purchase and sale.
The property was subsequently sold by a mortgage lender after the defendant defaulted, and the net proceeds were held in trust.
The court found that the CPL should have been discharged due to the plaintiffs' failure to make full and fair disclosure on the ex parte motion and because equitable factors favoured discharge.
The court also declined to order the funds held as security under Rule 45.02, noting the plaintiffs' claim was ultimately for damages.
The motion was granted and the funds were ordered released to the defendant.