The plaintiff purchaser brought a motion seeking the release of over $1.1 million held in trust by its counsel.
The funds had been paid into trust pursuant to a consent order to replace a vendor take-back mortgage on the subject property, pending a final determination of the amount owing to the defendant vendor.
The plaintiff argued that the funds should be released because the agreed-upon timetable for resolving the dispute had passed, the trust arrangement amounted to execution before judgment, and the plaintiff had sufficient assets to satisfy any judgment.
The court dismissed the motion, finding that the consent order did not provide for the release of the security if the timetable was not met, that holding agreed-upon security is not execution before judgment, and that the court has no jurisdiction to deprive a secured creditor of its security simply because the debtor has other assets.