Jay Krieger

The applicants sought an order requiring the respondent mortgagee to pay outstanding property taxes and a declaration that a Notice of Sale was invalid.

The applicants had defaulted on a first mortgage, which the respondent then purchased to protect its second-priority cross-collateral mortgage.

The cross-collateral mortgage stipulated that upon default and buyout, an 8% interest rate and a 10% administrative fee would apply to the entire principal.

The applicants argued this violated section 8 of the Interest Act.

The court dismissed the application, finding that the 8% rate applied to the entire principal, not just arrears, and therefore did not constitute a prohibited penalty under section 8.

The Notice of Sale was declared valid and enforceable.

The defendants brought a motion seeking an order requiring the plaintiff to post $150,000 as security for costs under Rule 56.01(1)(e).

The plaintiff's action claimed damages for an improvident sale of a mortgaged property and economic interference.

The court dismissed the motion, finding the defendants failed to meet their onus of proving the action was frivolous and vexatious, as there was evidence suggesting the mortgagee may have failed to take reasonable precautions to obtain true market value.

The plaintiff was awarded $15,000 in partial indemnity costs.

The appellant failed to appear for the appeal hearing despite knowing his counsel was seeking to be removed from the record and that he was required to be present.

The Court of Appeal dismissed the appeal as abandoned and awarded costs of $1,500 to the respondents.