The appellants challenged a judgment holding the mortgagor and certain original guarantors liable for a mortgage deficiency after sale under power of sale.
The central dispute concerned whether an extension agreement entered into with a subsequent purchaser discharged the guarantors, including under s. 9(4) of the Land Registration Reform Act and principles of novation.
The majority dismissed the appeal, holding the extension agreement did not extinguish the guarantors' liability, but allowed the lender's cross-appeal by restoring the $75,000 reduction and awarding solicitor and client costs.
A partial dissent would have allowed the guarantors' appeal on the basis that the extension discharged them.
