The defendants, Alfonso and Helen Fulchini, moved to discharge a Certificate of Pending Litigation (CPL) registered on Helen's property, Elizabeth Grove, which was obtained ex parte by the Bank of Nova Scotia (BNS).
The BNS's claim to an interest in the land was based on an alleged fraudulent conveyance by Alfonso to Helen of proceeds from the sale of another property, Easy Street, which were then traced into Elizabeth Grove.
The court found that the BNS had a reasonable claim to an interest in Elizabeth Grove, citing several "badges of fraud" in the transfer of funds between the spouses and the lack of credible evidence of consideration.
The court also rejected the defendants' arguments that damages were an adequate alternative remedy and that the CPL should be discharged due to non-disclosure by the BNS at the ex parte motion.
The motion to discharge the CPL was dismissed, though the court allowed for the CPL to be discharged if the defendants posted cash security.