The plaintiff, Ochea Ikpa, claimed an equitable mortgage over property previously owned by Godknows Itamunoala, based on a promissory note with a criminal interest rate.
The defendants, Tonye Itamunoala and Fiona Duckett (daughter and ex-wife of Godknows Itamunoala), who held a registered second mortgage on the property, brought a motion for summary judgment to dismiss the plaintiff's claim against them and to release the sale proceeds to them.
The court found that the defendants had no notice of the plaintiff's alleged equitable mortgage, thus it could not take priority over their registered interest.
Furthermore, the promissory note itself was deemed unenforceable as an equitable mortgage due to its manifestly illegal and usurious interest rate, entered into for an illegal purpose with troubling bargaining power dynamics.
The court also dismissed the plaintiff's claim of fraudulent conveyance, as there was no evidence the defendants had notice of the plaintiff's claim.
Consequently, the plaintiff lacked standing to challenge the quantum of the defendants' registered mortgage.
The motion for summary judgment was granted, dismissing the plaintiff's action against Tonye Itamunoala and Fiona Duckett.