The appellants, a real estate developer and related corporate entities, appealed a judgment granting the respondent lender $12.9 million plus interest on a defaulted commercial loan.
The appellants argued the application judge erred by failing to convert the application to an action, by conducting a credibility analysis on a paper record, and by foreclosing a defence of equitable set-off and counterclaim.
The Court of Appeal found the application judge's reasons were clear and sufficient, the documentary record amply supported the finding that no binding second amending agreement was ever reached, and credibility assessments were not necessary given the strength of the documentary evidence.
The court declined to resolve whether the enhanced fact-finding powers available under r. 20 apply to applications under r. 14, leaving that question for another day.
The appeal was dismissed and full indemnity costs of $55,000 were awarded to the respondent pursuant to the contractual costs clause in the loan agreement.