The plaintiff moved to certify a class action against the defendants regarding their practice of automatically renewing residential mortgages at maturity into six-month closed terms at higher posted rates.
The plaintiff alleged this practice breached section 8 of the Interest Act, breached the standard form contracts, and constituted unjust enrichment.
The court found that the pleadings disclosed viable causes of action, including that the automatic renewal could trigger 'arrears' under the Interest Act.
The court certified the class action, finding an identifiable class, common issues predominating over individual ones, and that a class proceeding was the preferable procedure.
