A law firm brought an application for an interpleader order to pay funds held in escrow into court, while a condominium corporation brought a cross-application seeking a mandatory injunction to force the law firm to pay the funds to the City of Toronto for property tax arrears pursuant to a settlement agreement.
The court dismissed the law firm's application, finding it could not use interpleader rules to protect itself from a potential breach of its own undertaking.
The court also dismissed the condominium corporation's application, finding it inappropriate to proceed by way of application without demonstrating a proper legal basis for the requested injunctive relief.