Michael McQuade

The plaintiffs alleged that the defendant, an officer of their corporation, fraudulently and without authorization registered two mortgages against their properties.

They also sued the lawyer who registered the mortgages for negligence and the mortgagees for relying on the mortgages despite alleged red flags.

The court dismissed the action, finding that the officer had actual authority to bind the corporation under its by-laws, the plaintiff was aware of and benefited from the mortgages as part of a scheme to avoid foreign creditors, the lawyer met the standard of care, and the mortgagees were protected by the indoor management rule and the Land Titles Act.

The defendant brought a motion to compel a representative of the plaintiffs to answer an undertaking arising from an examination for discovery regarding which Vitullo family member or related entity held an interest in a real estate brokerage connected to the transaction at issue.

The underlying action involved a claim for specific performance of a real estate transaction and a counterclaim alleging undisclosed conflicts of interest involving the broker and familial relationships.

The moving party argued the shareholding information was relevant to a pleaded conflict-of-interest allegation.

The responding party contended the question was irrelevant and that no undertaking had been given.

The court held the information was relevant to the pleadings and ordered the witness to provide the requested undertaking.

The plaintiff private mortgage lender sought summary judgment in four actions for principal, interest, renewal fees, and other charges under several short‑term mortgage agreements guaranteed by individual defendants.

The parties admitted the principal and contractual interest owing, and the court granted partial summary judgment for those amounts.

Disputed issues included recurring mortgage renewal fees, a daily fee of $100 under one loan, and legal fees claimed by the lender.

The court held there was no contractual basis for recurring monthly renewal fees beyond the single agreed extension, reduced claimed legal fees to a reasonable amount, and found the $100 daily fee would exceed the criminal interest rate under s. 347 of the Criminal Code or was otherwise unconscionable under the Unconscionable Transactions Relief Act.

The court therefore limited recovery to principal, agreed interest, and certain reasonable fees.

The plaintiff sought to certify a class action against the Bank of Montreal arising from a $77 million investment fraud perpetrated by Salim Damji.

The plaintiff alleged that BMO knowingly assisted in Damji's breach of trust, knowingly received fraudulent funds, and was negligent in its receipt of these funds.

The court found that the plaintiff satisfied the criteria for certification under s. 5 of the Class Proceedings Act, except for the requirement of a workable litigation plan.

The court adjourned the certification motion to allow the plaintiff to provide an acceptable litigation plan.

The plaintiff mortgagor brought an action against the defendant mortgagees for the improvident sale of a 125-acre development property under a power of sale.

The property was sold for $12.5 million.

The court found that the defendants failed to take reasonable precautions to obtain the fair market value of the property, having listed it at an inordinately low price, failed to adequately market it, unreasonably restricted the field of potential buyers, and acted with undue haste.

After reviewing competing appraisal evidence, the court determined the fair market value of the property at the time of sale was $16 million.

The court awarded the plaintiff $3.5 million in damages, representing the difference between the fair market value and the sale price.