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CPL discharged but respondent’s sale proceeds ordered paid into court pending estate claim.
A respondent moved to set aside an ex parte Certificate of Pending Litigation registered against a property following the death of the applicant’s son, who had lived in the property with the respondent spouse but was not on title.
The estate alleged that the respondent held an interest in the property subject to constructive or resulting trust arising from the deceased’s financial contributions to the home during the marriage.
The court held that the CPL should be discharged to permit the pending sale to close, but found a serious issue to be tried regarding the estate’s equitable claim to a portion of the respondent’s share of the proceeds.
As a result, the court ordered that the respondent’s one‑third share of the net proceeds be paid into court pending further determination of the estate’s claim.
Appeal allowed and damages for mental distress set aside due to lack of medical evidence of psychiatric illness.
The appellant collection agency appealed a Deputy Judge's decision finding it liable in negligence and awarding $5,000 in damages for mental distress to the respondent debtor.
The Divisional Court upheld the finding that the appellant's harassing phone calls and improper contacts with the respondent's employer breached the standard of care, as evidenced by violations of regulations under the Collection Agencies Act.
However, the court allowed the appeal and set aside the damages award because the respondent failed to provide medical evidence of a recognized psychiatric illness, which is required to recover damages for mental distress in negligence.
