The appellant, 11534599 Canada Corp., sought a stay pending appeal of an order requiring it to provide possession of a property to the respondents and to assign a mortgage.
The original order was based on a finding that the appellant had taken illegal possession of the property, contrary to the Mortgages Act, and thus could not rely on the exception in s. 2(3) to refuse assignment.
The court applied the three-part test for a stay (serious issue, irreparable harm, balance of convenience).
While a serious issue regarding the interpretation of "peaceable possession" was found, the court determined the appellant would not suffer irreparable harm given the respondents' undertaking not to sell the property and the existing equity.
The balance of convenience favored the respondents, who would suffer significant hardship if they lost their principal residence.
The motion for a stay was dismissed.