Melissa Truong

Following the dismissal of the appellant's appeal, the parties made written submissions regarding costs.

The respondents sought $16,535.61 on a partial indemnity basis, arguing costs were increased by the appellant's reply factum.

The appellant argued for $5,000.

The Court of Appeal found the respondents' claim excessive as the issues were familiar and not novel, fixing costs at $7,500 inclusive of disbursements and taxes.

The appellant loaned money secured by mortgages to a corporation.

The mortgage contained a condition increasing the interest rate from 12 percent to 21 percent if the mortgage matured and was not paid, or upon default.

The motion judge found this condition violated s. 8 of the Interest Act and that a subsequent renewal agreement was invalid because it lacked a required guarantor's signature.

The Court of Appeal dismissed the appeal, upholding the motion judge's findings that the interest rate increase was triggered by default, thus offending s. 8, and that the indoor management rule did not apply because the appellant knew or ought to have known the signature was required.