Patrick Eichenberg

The Court of Appeal for Ontario issued a costs endorsement following an appeal.

Costs were awarded against the appellant on a partial indemnity basis.

The respondents were awarded a total of $70,000, distributed as $20,000 to the plaintiff, $30,000 to one set of defendants, and $20,000 to another set of defendants.

The Canadian Imperial Bank of Commerce appealed a trial judgment setting aside postponement agreements that had elevated its mortgage to first priority over Maple Valley Acres Limited's mortgages.

The trial judge found the agreements were induced by a misrepresentation made by a sub-agent acting within the scope of his authority for the Bank.

The Court of Appeal upheld the trial judge's findings, confirming the rescission of the agreements and the restoration of mortgage priorities based on misrepresentation and unjust enrichment.

The Court also upheld a Sanderson costs order against the Bank but allowed a cross-appeal by third-party solicitors who had been improperly denied their costs at trial.