The plaintiff corporation brought a motion for summary judgment to enforce a mortgage against the defendant corporation.
The dispute involved two brothers, one acting as the plaintiff's director under a power of attorney from their father, and the other as the sole shareholder of the defendant.
The defendant argued that an oral agreement precluded enforcement and that the father lacked capacity to grant the power of attorney authorizing the action.
The court rejected the oral agreement defence based on the Statute of Frauds and the parol evidence rule.
However, finding a genuine issue regarding the father's capacity, the court stayed the motion for 30 days to allow the defendant's principal to commence proceedings under the Substitute Decisions Act to challenge the power of attorney.