The applicant, a litigation lender, sought a determination that its loan agreement with the respondent secured not only the proceeds of the respondent's tort action, but also the $1.25 million settlement of his statutory accident benefits (SABS) claim.
The tort action had been dismissed without any payout.
Applying principles of contractual interpretation and the doctrine of contra proferentem, the court found that the term 'Settlement Funds' in the loan agreement was restricted to monies paid to resolve the tort action.
The court noted that the lender had drafted the agreement specifically referencing the tort action but omitting any reference to the SABS claim, despite having reviewed the SABS file prior to drafting.
The application was dismissed, and the court held that the lender had no security interest in the SABS settlement funds.
