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Motion to extend Certificate of Pending Litigation in fraudulent conveyance claim granted.
The plaintiff bank obtained a without-notice Certificate of Pending Litigation (CPL) against a property transferred from a guarantor to his former spouse, alleging a fraudulent conveyance to defeat enforcement of a loan guarantee.
The trustee in bankruptcy moved to extend the CPL, while the defendants sought its discharge.
The Superior Court of Justice held that the plaintiff did not fail to make full and frank disclosure.
Applying the Grefford test, the Court found a high probability the plaintiff would establish default, sufficient badges of fraud to raise a triable issue of fraudulent conveyance, and that the balance of convenience favoured extending the CPL.
The motion to extend was granted and costs were ordered in the cause.
Buyer ordered to forfeit unpaid $40,000 deposit after repudiating real estate agreement hours after acceptance.
The plaintiffs brought a motion for summary judgment after the defendant buyer repudiated a residential real estate agreement within hours of acceptance and failed to pay the $40,000 deposit.
The plaintiffs subsequently sold the property to another buyer for $12,473 less than the defendant's agreed price.
The court conducted a comprehensive review of the law on deposits and relief from forfeiture, concluding that the Stockloser test applies to real estate deposits.
The court found that the plaintiffs were entitled to the full $40,000 deposit, as the defendant's breach was not accompanied by unconscionability that would justify relief from forfeiture, despite the deposit exceeding the actual damages.
