The plaintiffs sought to certify a class action against CIBC Mortgages Inc. regarding the calculation of prepayment penalties on residential mortgages.
The plaintiffs alleged that the prepayment penalty clauses were illegal, contrary to public policy, unconscionable, and void for uncertainty, and that the defendant miscalculated the penalties by failing to apply a present value discount and using a shortened amortization period.
The court found that the pleadings did not disclose causes of action for illegality, unconscionability (as pleaded), uncertainty, or failure to apply a present value discount.
However, the court found a valid cause of action regarding the use of a shortened amortization period and certified the action as a class proceeding on that narrowed basis.