The Bank of Montreal sought a declaration that its mortgage on a property in Oshawa was entitled to first priority over a competing mortgage registered by 10655252 Canada Corporation, relying on the doctrine of equitable subrogation.
The court found that BMO’s funds were used to pay out the prior first mortgage (CIBC), and that all parties intended BMO to have first priority.
Due to the solicitor’s negligence, the BMO mortgage was not registered first, but the court exercised its discretion to grant equitable subrogation, giving BMO first priority to the extent of the CIBC mortgage.
