Taayo Simmonds

The plaintiff sought summary judgment to enforce a collateral mortgage on an Ontario property owned by the defendant wife, which secured a loan to her husband's company.

A New York court had previously found the personal guarantees valid.

The Ontario Superior Court of Justice declined to apply issue estoppel, finding it would work an injustice.

The court held the mortgage was unenforceable because it was the product of presumed undue influence by the husband, of which the plaintiff had constructive notice, and the plaintiff failed to ensure the wife received independent legal advice.

The action was dismissed.