An adult daughter fraudulently transferred title of her elderly parents' mortgage-free home into her own name and obtained a $760,000 mortgage from a lender.
When the daughter defaulted, the lender attempted to enforce the mortgage.
The motion judge granted partial summary judgment, declaring the transfer and mortgage void as fraudulent instruments under the Land Titles Act, and ordered the daughter to pay $150,000 in punitive damages.
The daughter appealed the punitive damages and costs, while the lender appealed the finding that its mortgage was void.
The Divisional Court dismissed both appeals, upholding the punitive damages due to the daughter's egregious conduct and affirming that under the doctrine of deferred indefeasibility, the lender's interest must yield to the innocent homeowners.