The plaintiffs sought leave to obtain a Certificate of Pending Litigation (CPL) against an investment property, arguing they were improperly excluded from its marketing and sale despite being 22.5% investors.
The property had been sold for $239,000 above fair market value.
The court dismissed the motion for a CPL, finding the property was not unique, was acquired solely for investment, and damages could be easily calculated, thus an alternative claim for damages was satisfactory.
The court balanced the equities, concluding that a CPL would cause immediate and serious negative financial consequences for all investors.
Instead, the court ordered 22.5% of the net sale proceeds and a further $22,500 (representing 22.5% of the vendor take-back mortgage) to be paid into court to secure the plaintiffs' interest, allowing the sale to proceed.