In a commercial lending dispute arising from failed condominium project financing, the appellants challenged findings that they breached the original takeout mortgage commitment, the assignment of takeout financing, and a later amended commitment.
The Court of Appeal upheld the liability findings, concluding the appellants had no lawful basis to refuse funding in 1991 or 1992 and that the respondent was entitled to full damages from the earlier repudiation.
The court held, however, that compound interest was not available under s. 130 of the Courts of Justice Act and was not justified on equitable grounds in an ordinary breach of contract claim.
The appeal was therefore allowed only to substitute simple interest for compound interest.
