The defendant, 2756646 Ontario Inc. (Mitchell Woods), brought a motion to discharge five certificates of pending litigation (CPLs) registered against nine properties.
The plaintiffs had obtained these CPLs based on Agreements of Purchase and Sale (APS) for homes that were never built.
Mitchell Woods argued the APS were not enforceable against it as it was not the named vendor and that damages would be an adequate remedy.
The plaintiffs contended that Hira Custom Homes Inc. acted as Mitchell Woods' agent, or Mitchell Woods was implicitly referenced in the APS, or a constructive trust arose.
The court found a triable issue regarding the plaintiffs' interest in the land based on agency or implied terms.
Considering the equities, particularly the advantageous terms of the APS and the defendant's failure to provide evidence of its ability to pay damages, the court dismissed the motion to discharge the CPLs.