John F.L. Rose

The appellant appealed a decision finding that a debt survived bankruptcy under section 178 of the Bankruptcy and Insolvency Act and that a specific mortgage was invalid.

The Court of Appeal dismissed the appeal, upholding the lower court's findings on both the survival of the debt and the invalidity of the mortgage, and awarded costs of $2,000 to the respondent.

The parties brought a joint motion to implement a settlement of an appeal.

They sought to amend the lower court's judgment, which had declared a mortgage fraudulent and void, so that the mortgage would only be void as between the appellant and respondent.

The Court of Appeal dismissed the motion, finding that the proposed amendment could compromise the rights of other secured creditors, such as Legal Aid, who were not parties to the settlement.