The respondents granted a second mortgage on their Richmond Hill home to secure a $120,000 loan from the appellant.
Upon maturity, the appellant issued a discharge statement and subsequently a Notice of Sale with significantly inflated charges.
The respondents challenged the amounts and the premature notice in a Superior Court application under section 12 of the Mortgages Act.
The application judge determined the proper discharge amount and disallowed certain charges, including an illegal interest penalty and unsupported professional fees.
The appellant appealed, arguing the application judge lacked jurisdiction and that the matter should have been assessed by an assessment officer under section 43 of the Mortgages Act.
The Court of Appeal upheld the application judge's decision, finding he had jurisdiction to address all issues and that the respondents' application was a justifiable response to the appellant's unreasonable conduct.