Urgent injunction for possession denied where mortgagee used self-help to change locks instead of court process.
The applicants, as first mortgagees of a commercial property, attempted to take possession following the respondent's default by changing the locks early in the morning.
The respondent's principal subsequently cut the locks and re-entered the property, leading to police involvement.
The applicants brought an urgent application for an injunction and a declaration that they were mortgagees in possession.
The court dismissed the application, finding that the applicants did not take peaceable possession as they anticipated resistance, and held that the applicants should have pursued a standard power of sale process rather than resorting to self-help measures that breach the peace.
Zapfe Holdings Inc. and Michael Sourlis. v. 1923159 Ontario Inc, 2022 ONSC 3062