The plaintiffs brought a motion for a certificate of pending litigation (CPL) regarding a residential property transferred by the defendant to his spouse.
The plaintiffs sought to recover on unsecured demand loans and alleged the transfer was a fraudulent conveyance.
The court applied the Grefford test and found a high probability of success on the debt claim, sufficient badges of fraud to raise a triable issue regarding intent to defeat creditors, and that the balance of convenience favoured granting the CPL.
The motion was granted and costs were awarded to the plaintiffs.
