NLG 2011 Inc. v. Central 1 Credit Union

NLG 2011 Inc. v. Central 1 Credit Union

The appeal was dismissed because the Court of Appeal concluded the application judge correctly found the payout rate of 4.35% was substantiated by the lender's evidence given the risk-free nature of the loan and that the prepayment clause was not void for uncertainty and was properly interpreted in accordance with...

Source-derived case information.

Citation
2014 ONCA 508
Parties
Applicant (appellant): NLG 2011 Inc. formerly Island View Suites Limited; Respondent (respondent in Appeal): Central 1 Credit Union
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
11 July 2014
Procedural Posture
Collection / Appeal From Superior Court of Justice; Court of Appeal Decision
Outcome
Appeal dismissed
Legal Topics
Prepayment Clause Validity, Payout Rate Calculation, Uncertainty in Contractual Terms, Evidence of Lender's Basis for Rates
Source Language
english
Civil Contract Law Mortgage Law Property Law Prepayment Clause Validity Payout Rate Calculation Uncertainty in Contractual Terms Evidence of Lender's Basis for Rates

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Parties

NLG 2011 Inc. formerly Island View Suites Limited

Applicant (appellant)

Central 1 Credit Union

Respondent (respondent in Appeal)

Procedural Posture

Collection / Appeal From Superior Court of Justice; Court of Appeal Decision

Legal Issues

  1. 1 Whether the prepayment clause in the mortgage is void for uncertainty
  2. 2 Whether the payout rate calculation of 4.35% was reasonable and substantiated by evidence
  3. 3 Whether the application judge correctly interpreted the prepayment clause in accordance with its purpose

Ratio Decidendi

The appeal was dismissed because the Court of Appeal concluded the application judge correctly found the payout rate of 4.35% was substantiated by the lender's evidence given the risk-free nature of the loan and that the prepayment clause was not void for uncertainty and was properly interpreted in accordance with its purpose.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed