John Jeyaratnam

The court voided six promissory notes and struck out related mortgages registered by the plaintiffs against the defendants' properties, finding that the notes were materially altered without consent, contrary to the Bills of Exchange Act.

The court also declined to grant equitable mortgages or certificates of pending litigation, citing the plaintiffs' inequitable conduct and failure to meet statutory tests.

The decision addresses issues of forged notes, after-acquired property, corporate personality, and the application of the Family Law Act to matrimonial homes.

The Court of Appeal for Ontario dismissed the appeal by Judith Lorraine Farrage and Edmund Farrage regarding the accounting and proceeds from three mortgaged properties in Kitchener, Ontario.

The application judge’s acceptance of the respondent’s expert calculations, subject to a property tax adjustment, was upheld.

The Court found no error in the application judge’s approach to interest calculations or in her assessment of damages, and awarded costs of $7,500 to the respondent.

Dalpha Technologies Inc. brought an application seeking an accounting and payment from Judith Lorraine Farrage and Edmund Farrage, who had taken possession of properties under a vendor-take-back mortgage after default.

The primary issues were the accounting of rental income and expenses, the calculation of the mortgage debt, and Edmund Farrage's personal liability.

The court dismissed the application against Edmund Farrage, finding no basis for his liability.

For Judith Farrage, the court accepted Dalpha's expert's accounting methodology, drawing an adverse inference against Ms. Farrage due to her failure to provide complete financial documentation.

The court ordered Ms. Farrage to pay Dalpha a sum to be recalculated to include certain property tax arrears, with Dalpha also entitled to pre- and post-judgment interest.