London Loan & Savings Co. of Canada v. Meagher

London Loan & Savings Co. of Canada v. Meagher

The Interest Act ss.6-9 does not apply because the mortgage instrument did not on its face constitute a sinking fund or blended repayment plan as described in s.6; accordingly the $3,000 bonus was a valid collateral contractual advantage or debt outside the mortgage and not recoverable by the liquidator under the Act.

Source-derived case information.

Citation
[1930] SCR 378
Parties
Defendant/appellant: London Loan & Savings Company of Canada; Plaintiff/respondent: Robert K. Meagher, Liquidator of Trans-Canada Theatres Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
10 April 1930
Procedural Posture
Appeal / Supreme Court of Canada Judgment on Appeal From Appellate Division of Ontario
Outcome
Appeal allowed; judgment of Appellate Division reversed; action dismissed with costs throughout.
Legal Topics
Interest Act (ss.6 9), Bonus to Mortgagee, Sinking Fund/blended Repayment Plans, Collateral Advantage, Equity of Redemption
Source Language
english
Mortgage Law Statutory Interpretation Equity Commercial Law Interest Act (ss.6 9) Bonus to Mortgagee Sinking Fund/blended Repayment Plans Collateral Advantage +1 more

Source-derived case record

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Parties

London Loan & Savings Company of Canada

Defendant/appellant

Robert K. Meagher, Liquidator of Trans-Canada Theatres Limited

Plaintiff/respondent

Procedural Posture

Appeal / Supreme Court of Canada Judgment on Appeal From Appellate Division of Ontario

Legal Issues

  1. 1 Whether ss.6-9 of the Interest Act apply where a bonus was paid to the mortgagee outside the mortgage instrument
  2. 2 Whether the $3,000 bonus reduced the actual principal advanced and thus is recoverable by the liquidator
  3. 3 Whether collateral advantages agreed at time of mortgage are enforceable absent unfairness or repugnancy

Ratio Decidendi

The Interest Act ss.6-9 does not apply because the mortgage instrument did not on its face constitute a sinking fund or blended repayment plan as described in s.6; accordingly the $3,000 bonus was a valid collateral contractual advantage or debt outside the mortgage and not recoverable by the liquidator under the Act.

Court Disposition

Appeal allowed; judgment of Appellate Division reversed; action dismissed with costs throughout.

Orders

  • Appeal allowed.
  • Judgment of the Appellate Division of the Supreme Court of Ontario reversed.