T. Kerzner

The applicants moved for an order regarding post-closing issues following a court-approved sale of properties.

The respondents sought a payout on two mortgages that included a prepayment penalty for future interest loss.

The applicants argued the mortgages were self-dealing and should not include a prepayment penalty, as the original CMHC mortgages did not.

The court found that the mortgages did not contain a prepayment privilege and that the respondents were entitled to compensation for the loss resulting from the early vesting off title of the mortgages.

The court ruled in favour of the respondents.

The applicants moved for an order regarding post-closing issues following a court-approved sale of properties.

The respondents sought payout on two mortgages, including compensation for future interest loss, as the mortgages were vested off title prior to maturity.

The applicants objected, arguing the mortgages were self-dealing and should not include an unbargained pre-payment penalty.

The court found that the mortgages did not contain a pre-payment privilege and that the respondents did not breach any fiduciary duty in the refinancing.

The court ruled in favour of the respondents, ordering that they be compensated for future interest loss.