Court disallowed numerous unsubstantiated fees charged by a first mortgagee following a power of sale.
The Applicant, a third mortgagee, challenged approximately $200,000 in charges and fees claimed by the Respondent, the first mortgagee, following a power of sale of vacant land.
The Applicant argued the charges were illegal, unenforceable, unsubstantiated, or penalties contrary to the Interest Act.
The court, exercising its power under Rule 14.05(3)(e) of the Rules of Civil Procedure, reviewed each disputed charge, disallowing many for lack of evidence or legal basis, including a three-month interest penalty and unjustified administrative and legal fees.
The court ordered the Respondent to pay $155,983.41 to the Applicant.
2642322 Ont. Inc. vs. Rexell Dev. Inc., 2023 ONSC 1979