A judgment creditor brought proceedings concerning a mortgaged property subject to power of sale, fearing the mortgagee and borrower were not independent and that the property might be sold below fair market value, leaving the judgment unsatisfied.
The parties ultimately resolved the underlying dispute on terms ensuring the property would be sold through a public process.
Both the judgment creditor and the mortgagee sought costs against each other.
The court held that the borrower’s failure to meet obligations caused the dispute between creditors and that ordering costs between them would not alter their legal priorities or economic exposure.
No order as to costs was made, leaving creditors free to seek recovery of enforcement costs from the borrower and the property.