The Defendants/Appellants appealed a Master's decision that dismissed their motion to set aside a Certificate of Pending Litigation (CPL) and confirmed a $600,000 payment into court as security.
The appeal focused on the Plaintiffs/Respondents' counsel's failure to disclose to the Master that opposing counsel had requested notice of the ex parte CPL motion.
The court found that this non-disclosure was a material fact that adversely impacted the Master's ruling, leading to a palpable and overriding error.
The appeal was allowed, the CPL discharged, the security fund released to the Appellants, and substantial indemnity costs awarded against the Respondents.