The defendants brought a motion to discharge a Certificate of Pending Litigation (CPL) that the plaintiffs had obtained ex parte on a property.
The plaintiffs had commenced an action alleging breach of contract and misrepresentation regarding a construction project, and subsequently discovered the defendants transferred the subject property to family members for nominal consideration before listing it for sale.
The court applied the Grefford test for CPLs in fraudulent conveyance actions and found a high probability of success in the main action, a triable issue regarding intent to defeat creditors, and that the balance of convenience favoured maintaining the CPL.
The court also rejected the defendants' argument that the CPL should be discharged for material non-disclosure.
The motion was dismissed.
