The applicant sought declarations regarding the interpretation and enforcement of settlement Minutes and a third mortgage registered following a construction lien dispute in a residential townhouse development.
The respondent refused to provide partial mortgage discharges required to permit closings of individual unit sales, arguing the settlement lacked consideration, that defaults under a prior mortgage rendered its mortgage in default, and that the applicant breached standard charge terms.
The court rejected these defences, holding that valid consideration existed and that the mortgage and Minutes clearly required the respondent to provide partial discharges to facilitate sales.
The court granted declarations confirming the applicant’s right to register partial discharges and enjoined the respondent from withholding authorization for those discharges.
A request for a reference to determine damages was dismissed as premature.
