Randolph D. Mills

The plaintiff brought a motion for summary judgment against the defendants for a debt owed under two private mortgages.

The defendants argued that the interest terms contravened sections 6 and 8 of the Interest Act because interest was prepaid and deducted from the advance, allegedly creating a blended mortgage.

The court found no genuine issue requiring a trial, holding that the mortgages were clearly interest-only and that the interest rate increase was triggered by the passage of time, not default.

Summary judgment was granted in favour of the plaintiff.

The plaintiff bank mistakenly wired a duplicate payment of $60,101 USD to the corporate defendant's account due to a clerical error.

The defendants refused to return the funds, arguing the bank's client owed them money.

The motion judge granted summary judgment for the bank.

On appeal, the Court of Appeal upheld the judgment against the corporate defendant, finding it was against conscience to retain money paid under a mistake of fact.

However, the appeal was allowed with respect to the individual defendant, as there was no basis for personal liability.