The plaintiff brought a motion for summary judgment to enforce a collateral mortgage, a share purchase agreement, and a promissory note after the defendants defaulted on payments.
The defendants argued they were entitled to a hold-back or set-off due to alleged financial misconduct by the plaintiff and claims by third-party investors.
The court found no evidence of misconduct and no contractual or legal basis for a set-off.
Summary judgment was granted, with the court applying section 4 of the Interest Act to limit the interest rate on the agreement and note to 5% annually, while enforcing the 1% monthly compound interest on the mortgage.
