Real Estate Law - ONCA

The Court of Appeal for Ontario considered whether an order consolidating two actions and dismissing a summary judgment motion was final or interlocutory, and whether to stay the operation of the schedule in the motion judge’s order pending appeal.

The court found the order to be final, as it disposed of the limitation defence under the Real Property Limitations Act, and stayed the order pending appeal.

The appellant, 2708959 Ontario Inc., appealed the dismissal of its application regarding four structures encroaching on a municipal road allowance in Stratford.

The Court of Appeal upheld the application judge’s finding that the City of Stratford had not expressly or tacitly approved the encroachments when the building and site plan drawings were approved in 1998.

The court found that the onus was on the original proponent and their advisors to bring the encroachments to the City’s attention, and that approval of site plans and occupancy permits did not constitute approval of the encroachments.

The appeal was dismissed, and costs were awarded to the City.

The Court of Appeal for Ontario dismissed Janina Joseph-Walker's motion to set aside the administrative dismissal of her appeal and to extend the time for perfection of her appeal in a mortgage enforcement matter.

The court found that Joseph-Walker failed to show a continuing intention to appeal, did not adequately explain her delay, and that her grounds of appeal had no merit.

The court also noted that the equities favoured AST Trust Company (Canada), as Joseph-Walker had been in default for over three years and had registered subsequent mortgages without notice.

Costs of $3,000 were awarded to AST.

The Court of Appeal for Ontario granted a conditional stay of a summary judgment and writ of possession in a mortgage enforcement action.

The moving parties, unrepresented at trial, sought a stay pending appeal after summary judgment was granted against them and a writ of possession issued.

The court found that while the original grounds of appeal did not raise a serious question to be tried, a new ground—whether the summary judgment process was appropriate given evidence of conflict of interest and lack of independent legal advice—did raise a serious question.

The court held that denying a stay could cause irreparable harm and that the balance of convenience favoured the moving parties.

The stay was granted until July 25, 2025, with a further extension conditional on amending the grounds of appeal.

The Court of Appeal for Ontario dismissed the appeal of Canguard Group Limited and others from a partial summary judgment order declaring a mortgage on the respondent’s property void as a fraudulent conveyance.

The court found no error in the motion judge’s reliance on the evidentiary record, including affidavits, and held that the appellant’s failure to respond or provide discovery justified summary judgment.

The court also rejected arguments regarding the scope of the order and the appropriateness of partial summary judgment.

The Court of Appeal for Ontario considered an appeal by 100 Bloor Street West Corporation regarding the calculation of realty taxes and a substantial indemnity costs award in a commercial lease dispute with Barry’s Bootcamp Canada Inc. The court upheld the motion judge’s decision requiring the landlord to use a single, consistent method for calculating realty taxes attributable to both the leased premises and the building’s parking garage, rejecting the landlord’s attempt to “mix-and-match” calculation methods.

However, the court allowed the appeal on costs, finding the original award excessive and reducing it to $300,000 plus disbursements.

The decision clarifies the contractual interpretation of lease provisions granting discretion to landlords and the principles governing costs in complex commercial litigation.

The Court of Appeal for Ontario dismissed the appeal in this commercial landlord-tenant dispute.

The trial judge found that the tenant, 2682543 Ontario Inc., repudiated the lease for restaurant premises and that the landlord, 720443 Ontario Inc., properly accepted the repudiation and terminated the lease.

The tenant and its guarantor, Shahab Rashid Savojbolaghi, were held liable for damages.

The Court rejected the tenant’s arguments regarding joint occupancy and the timing of possession, upholding the trial judge’s interpretation of the lease and the finding of repudiation.

The Court of Appeal for Ontario dismissed the appeal of Lori Gallant, who sought a court order to fix the rental rate for a renewed term of a commercial lease with Sherril Johnson and Fitzroy Johnson.

The court held that the lease’s renewal clause was merely an agreement to agree, providing no basis for the court to set a rental rate or imply a method for doing so.

The court also found no breach of good faith by the respondents in the rental negotiations.

The respondents were awarded costs.

The Court of Appeal for Ontario allowed in part the appeal of Westmount-Keele Limited in a solicitor’s negligence action against Nicholas C. Tibollo and his professional corporation.

The court found that the trial judge erred in declining to award damages for certain legal fees and elevator repairs, and varied the judgment to include these amounts.

The court otherwise upheld the trial judge’s findings regarding lost opportunity damages, property taxes, and other claims, finding no palpable and overriding error.

The appeal was allowed in part, and costs were awarded to the appellant.

The Court of Appeal for Ontario dismissed the appeal by Sa Yan and Royal LePage Signature Realty regarding the return of a $60,000 deposit following the termination of an assignment of an agreement of purchase and sale.

The court upheld the application judge’s finding that the respondents, Christine Yui and Michelle Yui, properly exercised a lawyer approval condition to terminate the agreement and were entitled to the return of their deposit.

The court also declined to vary the order to include pre- and post-judgment interest, as the respondents had not brought a cross-appeal.

The Court of Appeal for Ontario considered an appeal by Peter Tak Ming Lee and Mun Chung Leung from a judgment granting York Region Standard Condominium Corporation No. 972 possession of their unit and leave to issue a writ of possession, unless the appellants discharged a lien.

The appeal raised issues of trial judge bias, disregard of evidence, and the validity and calculation of the lien.

The court rejected the bias and evidentiary grounds, but found a calculation error in the lien amount, requiring a reduction.

The appeal was allowed in part, with no order as to costs.

The Court of Appeal for Ontario dismissed Stephen Harbour’s appeal from the order of Justice William S. Chalmers, which required Harbour to indemnify Puneet Brar and Realtus Law Professional Corporation for payment of a Canada Revenue Agency lien on Harbour’s property.

The court found no error in the application judge’s findings regarding the interpretation of the indemnity agreement, the need to convert the application to an action, or the finding of unjust enrichment.

The appeal was dismissed with costs to the respondents.

The moving parties, John Duca and Joseph Duca, sought an order requiring the appellant, Massimo Conti, to post security for costs and pay outstanding costs orders as a condition of proceeding with his appeal.

The appeal concerns the dismissal of Mr. Conti’s claim for an ownership interest in a residential property.

The Court of Appeal ordered Mr. Conti to post security for costs in the amount of $6,700, payable in installments, and awarded costs of the motion to the moving parties.

The decision addresses the application of Rules 61.06(1) and 56.01(1)(c) of the Rules of Civil Procedure, the merits of the appeal, and the circumstances justifying security for costs.

This addendum to the judgment in McKenzie-Barnswell v. Xpert Credit Control Solutions Inc., 2025 ONCA 253, clarifies issues regarding post-judgment interest, costs, and the status of the mortgage at issue.

The Court of Appeal for Ontario confirms that post-judgment interest is to be calculated at the statutory rate under the Courts of Justice Act, not the rate in the mortgage, due to findings of unconscionability and wrongful conduct.

The court upholds the trial judge’s substantial indemnity costs award, orders a set-off of costs against the respondent’s indebtedness, and confirms that the unconscionable mortgage shall not be re-registered.

Monies paid into court as security for costs are to be paid out to the appellants’ lawyers in trust.

The appellants, Dorinda Nana Afriyie and Adusei Kwame, appealed the dismissal of their motion to set aside a default judgment and writ of possession in a mortgage action brought by Rume Ezomo.

The Court of Appeal found no error in the motion judge’s application of the criteria for setting aside a default judgment, as set out in Mountain View Farms Ltd. v. McQueen.

The court held that the motion judge properly considered the relevant factors, including promptness, explanation for default, arguable defence, prejudice, and the integrity of the administration of justice.

The appeal was dismissed, and costs were awarded to the respondent.

The Court of Appeal for Ontario allowed the appeal in part, finding no error in the trial decision except for the quantum of damages.

The court ordered the judgment to be amended to reduce damages by $1,310,000 to reflect deposits paid by the appellant and to correct the amount of pre- and post-judgment interest.

Costs of the appeal and trial were fixed in favour of the Receiver.

The Court of Appeal for Ontario considered an appeal from a trial decision setting aside a mortgage and construction contract on the basis of fraudulent misrepresentation and unconscionability.

The appellants, including Xpert Credit Control Solutions Inc. and its director Sam Joshi, challenged the trial judge’s findings and the scope of the remedy.

The Court upheld the findings of liability but found the trial judge erred in setting aside the entire mortgage and awarding speculative damages.

The Court reduced the enforceable mortgage amount to $319,000, reflecting only the legitimate debt, and upheld $153,000 in damages for negligent construction, setting aside the requirement to pay $250,000 into trust.

The Court of Appeal for Ontario dismissed Rene Luypaert’s appeal from an order granting the sale of a jointly owned property and a writ of possession for another property, both owned by his parents, for whom his sisters acted as litigation guardians.

The court found no error in the application judge’s refusal to grant an adjournment, in the application of the Partition Act, or in the issuance of the writ of possession.

The court also confirmed its jurisdiction to hear the appeal, given the mixed nature of the relief granted.

Costs were awarded to the respondents.

The Court of Appeal for Ontario allowed the appeal, set aside the summary judgment, and awarded costs to the appellants.

The court found that the motion judge erred in law by holding that the purchasers' requisitions regarding oil and gas leases were invalid because they did not go to the root of title.

The court was not satisfied that it could determine the validity of the requisitions on the record before it.

The Court of Appeal for Ontario dismissed the appeal by Judith Lorraine Farrage and Edmund Farrage regarding the accounting and proceeds from three mortgaged properties in Kitchener, Ontario.

The application judge’s acceptance of the respondent’s expert calculations, subject to a property tax adjustment, was upheld.

The Court found no error in the application judge’s approach to interest calculations or in her assessment of damages, and awarded costs of $7,500 to the respondent.