Dom Michaud

The Court-appointed Receiver sought approval of a lien claim settlement, administrative expenses, its fees, and directions regarding the mortgagee's claim for three months' bonus interest upon default.

The Court approved the settlement, expenses, and fees.

However, the Court directed the Receiver to reject the mortgagee's claim for bonus interest, finding that the mortgage provision violated section 8 of the Interest Act by imposing a higher charge on arrears.

The Court also held that section 17 of the Mortgages Act does not apply to distributions by a court-appointed receiver.

The defendant brought a motion for an order requiring the plaintiff to post security for costs under Rule 56.01(1).

The plaintiff conceded the initial onus but argued it had a good chance of success at trial regarding its claim for wrongful termination of a distributorship agreement.

The court found that the plaintiff demonstrated a good chance of success on the issues of payment terms and alleged breach of a mutual exclusivity provision.

The motion for security for costs was dismissed, and costs were awarded to the plaintiff.