MORTGAGES — Mortgagee's remedies — Foreclosure order

Law360 Canada (May 30, 2024, 9:58 AM EDT) -- Appeal by Raiwal Holdings Ltd. ("RHL") from trial order in favour of Fraser Valley Packers Inc. ("FVP") on grounds that trial judge erred by failing to distinguish between limitation period applicable to debt claim and limitation period applicable to mortgage RHL granted ("Mortgage"). RHL, FVP, and JND Management Services Ltd. ("JND”) entered into a joint venture agreement to acquire the Property for their joint use ("Agreement"). Despite the Agreement, RHL bought the Property for its sole benefit using the funds advanced by FVP and JND. When it became apparent that FVP and JND would not receive an equity interest in the Property, discussions between the parties centred on repayment of the funds that had been provided to RHL. Raiwal, sole director of RHL, signed a promissory note in favour of FVP. Nothing was paid before or after that due date and no steps were taken by FVP to enforce the note. Gill, representing FVP, and Raiwal executed the Mortgage, which granted a mortgage interest in the Property to FVP. FVP agreed not to register the Mortgage in order to enable Raiwal and RHL to seek refinancing at more favourable terms. When no payment was forthcoming, FVP commenced the foreclosure proceedings. The trial judge granted an order nisi, declaring that RHL was in default under the mortgage, and set the redemption amount due and owing to FVP as of the judgment date....
LexisNexis® Research Solutions

Related Sections