Ye Yuan

This costs endorsement follows a decision upholding the validity and enforceability of second and third mortgages registered against a property owned by a company in which the applicants were shareholders.

The court awards substantial indemnity costs to the successful third mortgagee, finding the amount claimed reasonable and declining to include the legal costs of the second mortgagee and the sale solicitor as part of the costs of the application.

The applicants, shareholders in Golden Ocean Investment Corporation, brought a motion challenging the validity of second and third mortgages registered against a property owned by the corporation.

They alleged the sole director executed the mortgages without authority as part of a fraud, and that the mortgagees were willfully blind to badges of fraud.

The court dismissed the motion, finding the mortgagees were bona fide purchasers for value who conducted proper legal due diligence.

The court held that taking a financial or underwriting risk does not constitute willful blindness to fraud, and the mortgagees were entitled to rely on the director's actual and ostensible authority.

The appellant appealed a summary judgment that awarded the respondent damages for a failed agreement of purchase and sale.

The appellant argued that the respondent's sales representative made a misrepresentation regarding future property price increases, which induced him to enter the agreement.

The Court of Appeal dismissed the appeal, affirming the motion judge's finding that the alleged misrepresentation was a non-actionable prediction, not a statement of fact, and there was no evidence it was made dishonestly or negligently.

Following a successful trial for breach of contract regarding a real estate joint venture, the plaintiff sought costs.

The plaintiff had made a formal offer to settle that was lower than the trial judgment.

Applying Rule 49.10, the court awarded partial indemnity costs up to the date of the offer and substantial indemnity costs thereafter.

The court found the claimed hours and rates reasonable and ordered the defendant to pay $45,757.27 in costs.