The applicants sought a temporary injunction to prevent a power of sale, an order to assign a first mortgage, and a vesting order for three lots, aiming to extinguish a second mortgage held by one of the respondents.
The court dismissed all requests, finding the applicants' attempt to "cut out" the second mortgage was not bona fide.
The court held that the assignment, even if granted, would not extinguish the second mortgage due to contractual subordination and the subsequent mortgagee's right to redeem.
The court also found no serious issue to be tried for the injunction, no irreparable harm, and that the balance of convenience favored the respondents, noting the applicants did not come with clean hands.
