This is a foreclosure action on a mortgage originally given in 1993 by 830990 Ontario Ltd. to 823042 Ontario Inc., allegedly assumed by 1305268 Ontario Inc. in 2006.
The plaintiff claimed the mortgage went into default in 2011 and sought foreclosure for over $2.5 million in unpaid interest.
The defendant argued the entire claim was a fraud orchestrated by Kenneth James, a disgruntled shareholder.
The court found that the plaintiff's principal witnesses, Marco Lorenti and Kenneth James, were not credible.
The court determined that the mortgage was never renewed or validly transferred to the plaintiff, that the renewal letters and transfer document were forged, and that the plaintiff was not the valid holder of the mortgage.
The action was dismissed.
Additionally, the court found the claim was statute-barred under the Real Property Limitations Act.