This endorsement addresses two motions: the Trustee in Bankruptcy's motion to transfer and consolidate a foreclosure action (or parts thereof) from Hamilton to the Commercial List in Toronto with a transfer at undervalue (TUV) motion in the bankruptcy proceeding, and a cross-motion by the Cardillo Respondents to transfer the entire bankruptcy proceeding to Hamilton.
The core dispute, the "250 Mortgage Dispute," concerns the validity and priority of a first mortgage assignment and tacking of subsequent mortgages on the bankrupt's primary asset.
The court found compelling reasons for a common determination of the 250 Mortgage Dispute due to interwoven issues and potential for inconsistent findings.
The cross-motion to transfer the bankruptcy to Hamilton was dismissed, as the Toronto proceeding was well advanced and the request was deemed a delay tactic.
Instead of a full transfer or consolidation, the court ordered a trial of the 250 Mortgage Dispute as an issue within the Toronto bankruptcy proceeding under s. 187(8) of the BIA, granting full party participation rights to the Mortgagee Defendants and staying the relevant part of the Foreclosure Action in Hamilton.
Costs were awarded against the Cardillo Respondents.
