DATE: 20060424

DOCKET: C44795

COURT OF APPEAL FOR ONTARIO

RE:

1284342 ONTARIO INC. (Plaintiff (Respondent)) – and – KMTC-KEY MANAGEMENT TECHNOLOGY CORPORATION and FAB-TELE COMMUNICATIONS LTD. (Defendants (Appellant))

BEFORE:

ROSENBERG, ARMSTRONG and ROULEAU JJ.A.

COUNSEL:

Patrick D. Monte

for the appellant

Marek Z. Tufman

for the respondent

HEARD & ENDORSED:

April 21, 2006

On appeal from the order of Justice Thomas R. Lofchik of the Superior Court of Justice dated December 28, 2005.

A P P E A L B O O K E N D O R S E M E N T

[1] We agree with the reasons of the motion judge. It was a condition precedent to the privilege to renew that the mortgage not be in default. The mortgage was in default and remains in default.

[2] Appeal dismissed with costs fixed at $7,500 inclusive of GST and disbursements. No costs of the motion before Armstrong J.A.