The respondent and a second mortgagee advanced funds to a mortgagor, but their mortgages were registered in the wrong order due to a solicitor's error.
The appellant, a third mortgagee, learned of the error and subsequently purchased an assignment of the mistakenly first-registered mortgage at a discount, claiming priority over the respondent.
The application judge found the appellant had actual notice of the true priority before acquiring the assignment, defeating its claim.
The Court of Appeal upheld this finding and dismissed the appeal.