2257573 Ontario Inc. v. Furney

2257573 Ontario Inc. v. Furney

The court upheld the contractual entitlement to substantial indemnity costs under the mortgages and guarantees, found no basis to depart from those terms based on the appellants' allegations, held the claimed costs were not excessive, and ordered the security for costs paid into court plus accrued interest be paid to the respondent to satisfy the appeal costs and applied toward unpaid trial costs.

Citation
2022 ONCA 552
Parties
Plaintiff/defendant by Counterclaim (respondent): 2257573 Ontario Inc.; Defendant/plaintiff by Counterclaim (appellant): Alex Aiden Fitzgerald Furney; Defendant/plaintiff by Counterclaim (appellant): Maryam Furney; Defendant/plaintiff by Counterclaim (appellant): Hassan Hashemi
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
21 July 2022
Procedural Posture
Collection / Appeal
Outcome
Appeal dismissed; appellants jointly and severally liable for appeal costs; security for costs paid into court ordered paid out to respondent and applied to unpaid trial costs.
Legal Topics
Summary Judgment, Substantial Indemnity Costs, Security for Costs, Mortgages, Guarantees, Appeal
Source Language
English
Civil Collection Costs Mortgage Law Procedure Summary Judgment Substantial Indemnity Costs Security for Costs +3 more

Case Brief

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Parties

2257573 Ontario Inc.

Plaintiff/defendant by Counterclaim (respondent)

Alex Aiden Fitzgerald Furney

Defendant/plaintiff by Counterclaim (appellant)

Maryam Furney

Defendant/plaintiff by Counterclaim (appellant)

Hassan Hashemi

Defendant/plaintiff by Counterclaim (appellant)

Procedural Posture

Collection / Appeal

Legal Issues

  1. 1 Whether contractual mortgage terms entitle respondent to substantial indemnity costs on appeal
  2. 2 Whether the security for costs paid into court should be paid out to the respondent
  3. 3 Whether alleged misconduct by the respondent justifies departing from enforcement of contractual costs clauses

Ratio Decidendi

The court upheld the contractual entitlement to substantial indemnity costs under the mortgages and guarantees, found no basis to depart from those terms based on the appellants' allegations, held the claimed costs were not excessive, and ordered the security for costs paid into court plus accrued interest be paid to the respondent to satisfy the appeal costs and applied toward unpaid trial costs.

Court Disposition

Appeal dismissed; appellants jointly and severally liable for appeal costs; security for costs paid into court ordered paid out to respondent and applied to unpaid trial costs.

Orders

  • Appellants jointly and severally liable to respondent for appeal costs in the amount of $27,289.50.
  • The amount of $27,389.30 paid into court as security for costs, plus any accrued interest, shall be immediately paid out to the respondent in payment of the ordered appeal costs and towards the unpaid trial costs order in the amount of $63,772.65 plus interest.