The plaintiffs brought a motion for default judgment against the defendant mortgagee, seeking a refund of overpayments and punitive damages.
The defendant had previously obtained a default judgment for $46,950.19 but later demanded $82,238.28 to discharge the mortgage when the plaintiffs sold their home.
The court found that the registrar had unlawfully signed the initial default judgment for unliquidated claims.
Furthermore, the court held that the defendant's demand for accelerated interest and excessive fees violated section 8 of the Interest Act and the Unconscionable Transactions Relief Act.
The court ordered the defendant to refund $40,223.85 and awarded $30,000 in punitive damages for its high-handed and unconscionable conduct.
