The defendant 2623559 Ontario Inc. appealed a Master's decision dismissing its motion to discharge a certificate of pending litigation on a property.
The plaintiff, a 50% owner of the vendor corporation (2425779 Ontario Inc.), alleged the sale to 2623559 Ontario Inc. was fraudulent and below market value.
The court upheld the Master's decision, finding no palpable and overriding error or error of law.
The Master correctly applied the test for discharging a CPL, considering the plaintiff's reasonable claim to an interest in land, the alleged "badges of fraud" in the transaction, and the "Dhunna factors" regarding the uniqueness of the land and the inadequacy of damages as an alternative remedy.
The court also determined that the alternative security paid into court was insufficient to protect the plaintiff's potential interest, which was significantly higher than the amount secured.
The appeal was dismissed with costs awarded to the plaintiff.