Kokanee Mortgage MIC Ltd. v. 669655 B.C. Ltd.

Kokanee Mortgage MIC Ltd. v. 669655 B.C. Ltd.

The appeal is allowed and the master's order approving the sale is set aside because the applicant (Kokanee) failed to adduce sufficient evidence that the proposed sale was provident: the marketing evidence was inadequate and conflicted, the standstill agreements limited effective marketing such that the market had...

Source-derived case information.

Citation
2014 BCSC 458
Parties
Petitioner: Kokanee Mortgage MIC Ltd.; Respondent (appellant): 669655 B.C. Ltd.; Respondent (appellant): Erwin Brechert
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
15 January 2014
Procedural Posture
Foreclosure Sale Appeal / Appeal (de Novo Hearing From Master's Order)
Outcome
Appeal allowed; master's order approving sale set aside.
Legal Topics
Foreclosure, Conduct of Sale, Standstill Agreement, Evidentiary Requirements for Sale Approval, Market Value Appraisal, Standard of Review for Master's Orders
Source Language
english
Property Law Mortgage Law Civil Procedure Appellate Review Foreclosure Conduct of Sale Standstill Agreement Evidentiary Requirements for Sale Approval +2 more

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Parties

Kokanee Mortgage MIC Ltd.

Petitioner

669655 B.C. Ltd.

Respondent (appellant)

Erwin Brechert

Respondent (appellant)

Procedural Posture

Foreclosure Sale Appeal / Appeal (de Novo Hearing From Master's Order)

Legal Issues

  1. 1 What is the standard of appellate review of a master's order approving a foreclosure sale?
  2. 2 What is the admissible evidentiary foundation for approval of a foreclosure sale?
  3. 3 What test applies to judicial approval of a foreclosure sale (whether the sale is provident)?

Ratio Decidendi

The appeal is allowed and the master's order approving the sale is set aside because the applicant (Kokanee) failed to adduce sufficient evidence that the proposed sale was provident: the marketing evidence was inadequate and conflicted, the standstill agreements limited effective marketing such that the market had not been shown to have determined value, and the appraisal evidence was outdated and inconsistent; a recent independent appraisal and detailed evidence of businesslike marketing, including during standstill periods, were required before approving the sale.

Court Disposition

Appeal allowed; master's order approving sale set aside.

Orders

  • Master's order approving sale of the Property set aside.
  • Appellants entitled to their ordinary costs of this appeal unless further submissions are ordered.