Glenn E. Cohen

The applicants, investors and shareholders of the respondent mortgage investment corporation, sought the appointment of a receiver and manager over the respondent's properties and assets under the Bankruptcy and Insolvency Act and the Courts of Justice Act.

The respondent opposed the application and brought a motion to stay or strike the application, arguing technical deficiencies regarding a co-lender not being named as a party and an allegedly defective s. 244 BIA notice.

The court dismissed the respondent's motion, finding no prejudice or injustice from the technical defects.

The court granted the receivership order, concluding it was just and convenient given the respondent's insolvency, default on obligations, and the need for an investigatory receiver to determine the status of the investors' funds and remaining assets.

The defendants brought a motion to transfer a mortgage enforcement action from Milton to Guelph, arguing the property and defendants were located in Guelph.

The plaintiff opposed, relying on Rule 13.1.01(3) which requires mortgage actions to be commenced in designated counties.

The court held that Rule 13.1.01(3) does not bar a transfer motion under Rule 13.1.02(2).

However, the court dismissed the motion after finding the defendants brought it for an improper tactical purpose to force a settlement, constituting an abuse of process.