The respondent, as assignee of a debt owed for legal services provided in real property litigation, registered a mortgage on the property to secure the debt.
The appellants, claiming beneficial ownership interests in the property, appealed the motion judge's decision, arguing that no valid debt existed and that the respondent was not entitled to the secured funds based on unjust enrichment and misrepresentation on title.
The Court of Appeal upheld the motion judge's finding that a debt was owed, noting the respondent's husband's testimony and the property owner's consent to the mortgage registration.
The court held that the respondent, as a bona fide purchaser for value with a registered interest, had priority over any unregistered beneficial interests of the appellants, and that there was no unjust enrichment as the assignment of the debt provided a juristic reason for the benefit received.