The plaintiffs brought a motion for a certificate of pending litigation (CPL) after the defendants terminated an agreement of purchase and sale for a residential property.
The defendants claimed the agreement was terminated because the plaintiffs failed to provide a certified cheque for the deposit, though the agreement only required a 'negotiable cheque'.
The court found that the plaintiffs had established a reasonable claim to an interest in the land, noting the property's unique feature of abutting a public park.
Concluding that the defendants likely repudiated the agreement to seek a higher purchase price in a rising market, the court held that the equities strongly favoured the plaintiffs and granted the CPL.