The defendants brought a motion to register a Certificate of Pending Litigation (CPL) on a commercial property after the plaintiffs refused to close the transaction.
The plaintiffs argued the agreement was part of a larger five-property deal and that the defendants acted in bad faith by only waiving conditions on one property while restructuring the vendor take-back mortgage.
The court found that while the plaintiffs raised valid concerns about the defendants' conduct, the defendants had a triable claim to an interest in land and had invested substantially in development plans.
The court granted the CPL on the condition that the defendants' principal provide a personal indemnity undertaking.
