The plaintiff, Naymark Law Professional Corporation, brought a motion for leave to obtain a Certificate of Pending Litigation (CPL) on a property and for substituted service by email on two defendants.
The CPL was sought in relation to a fraudulent conveyance claim against the defendants, who had transferred a jointly owned property for no consideration shortly after an assessment report confirmed a significant debt owed to the plaintiff for legal fees.
The court applied the modified test for CPLs in fraudulent conveyance claims, finding a high probability of judgment recovery, a prima facie case of fraudulent transfer intent, and that the balance of convenience favored granting the CPL.
The court also granted substituted service by email, noting the defendants' past evasion of service and the reasonable likelihood that email would bring the matter to their attention.
