The plaintiff, Scotia Mortgage Corporation, brought a motion for summary judgment against the mortgagors and the guarantor for default under a first mortgage.
The property had been destroyed by fire, and insurance proceeds were insufficient to cover the mortgage debt due to a rebuilding clause.
The guarantor defended on grounds including non es factum and material alteration of the mortgage.
The court granted summary judgment to the plaintiff, finding the guarantor's defences without merit.
A second mortgagee, named as a third party, also moved for summary judgment to dismiss claims that he was liable as a mortgagee in possession.
The court dismissed the second mortgagee's motion, finding that whether he had assumed control of the property was a genuine issue requiring a trial.