The respondents sought to purchase a property owned by the appellant organization and advanced $1,735,000 under a Control Agreement dated April 8, 2015.
The trial judge found the funds constituted a loan repayable regardless of whether the property purchase was completed, that interest at 12% per annum was payable, and that two individual appellants were jointly and severally liable for repayment.
The appellants appealed, arguing the loan was conditional on property acquisition, that no interest was payable, and that the individuals were not personally liable.
The Court of Appeal dismissed the appeal, upholding the trial judge's interpretation of the Control Agreement and finding the appellants' interpretation commercially unreasonable.