The applicant sought continuation of an ex parte order preserving a property owned by her in-laws and requiring discharge of a collateral mortgage registered shortly before trial in a family property dispute involving claims of constructive and resulting trust.
The court considered the interlocutory injunction test from RJR‑MacDonald Inc. v. Canada (Attorney General).
While the court found serious issues to be tried and a risk of irreparable harm if the mortgage fully encumbered the property, it determined that the balance of convenience favoured permitting the mortgage to remain in place subject to limits.
The court ordered that the respondents could draw no more than $250,000 on the secured line of credit pending trial and continued the certificate of pending litigation.
The preservation and mortgage discharge aspects of the prior ex parte order were set aside and no costs were awarded.