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A law firm's motion for a declaration and an equitable mortgage over a former client's property for unpaid legal fees was dismissed.
The court considered whether Blaney McMurtry LLP, former counsel for the defendants, was entitled to a declaration or an equitable mortgage over the defendant’s property for unpaid legal fees, based on a prior consent order.
The court found that the consent order did not create an equitable mortgage in favour of Blaney, as the intention was for a bank to be the secured creditor, not Blaney.
The motion was dismissed.
The Court of Appeal dismissed the guarantor's appeal, upholding the summary judgment enforcing a personal guarantee.
The Court of Appeal for Ontario dismissed the appeal of Shahin Songhorigakien from a summary judgment ordering her to pay $500,000 plus interest and costs to the Bank of Montreal under a personal guarantee for a corporate overdraft facility.
The court found no error in the motion judge’s conclusion that there was no genuine issue requiring trial, that the bank owed no special duty to Songhorigakien, and that her non est factum defence had no air of reality.
The court also rejected arguments of procedural unfairness.
