MacDonald v. Smith

MacDonald v. Smith

The plaintiffs' claim was dismissed because it disclosed no cause of action, constituted an abuse of process and vexatious litigation (relying on Meads v. Meads for pseudo‑legal argument), and there was no legal connection between the plaintiffs and CMHC; defendants were therefore entitled to summary judgment and dismissal.

Citation
2013 NSSC 143
Parties
Plaintiff (mortgagor): Maritime Residential Housing Development Limited; Plaintiff (guarantor): Michael MacDonald; Defendant (mortgagee): First National Financial GP Corporation; Defendant (board Member): Stephen Smith; Defendant (board Member): Moray Tawse; Defendant (board Member): Robert Inglis; Defendant (board Member): Scott C. McKenzie; Defendant (board Member): Jason Ellis; Defendant (board Member): Jeremy Wedgbury; Defendant (board Member): Susan J. Biggar; Defendant (board Member): Liza White; Defendant (insurer): Canada Mortgage and Housing Corporation; Defendant (president, Cmhc): Karen Kinsley
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
16 January 2013
Procedural Posture
Civil (mortgage/contract) / Motion for Summary Judgment / Decision on Dismissal (summary Judgment on Pleadings and Evidence)
Outcome
Plaintiffs' action dismissed; defendants granted summary judgment on the pleadings and evidence; costs awarded to defendant corporations.
Legal Topics
Summary Judgment, Abuse of Process, Vexatious Litigation, Mortgage Foreclosure, Mortgage Insurance
Source Language
English
Civil Procedure Property Law Insurance Law Summary Judgment Abuse of Process Vexatious Litigation Mortgage Foreclosure Mortgage Insurance

Case Brief

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Parties

Maritime Residential Housing Development Limited

Plaintiff (mortgagor)

Michael MacDonald

Plaintiff (guarantor)

First National Financial GP Corporation

Defendant (mortgagee)

Stephen Smith

Defendant (board Member)

Moray Tawse

Defendant (board Member)

Robert Inglis

Defendant (board Member)

Scott C. McKenzie

Defendant (board Member)

Jason Ellis

Defendant (board Member)

Jeremy Wedgbury

Defendant (board Member)

Susan J. Biggar

Defendant (board Member)

Liza White

Defendant (board Member)

Canada Mortgage and Housing Corporation

Defendant (insurer)

Karen Kinsley

Defendant (president, Cmhc)

Procedural Posture

Civil (mortgage/contract) / Motion for Summary Judgment / Decision on Dismissal (summary Judgment on Pleadings and Evidence)

Legal Issues

  1. 1 Whether the plaintiffs disclosed a cause of action
  2. 2 Whether the proceedings constituted an abuse of process/vexatious litigation
  3. 3 Whether CMHC owed any duty or contractual obligation to the plaintiffs

Ratio Decidendi

The plaintiffs' claim was dismissed because it disclosed no cause of action, constituted an abuse of process and vexatious litigation (relying on Meads v. Meads for pseudo‑legal argument), and there was no legal connection between the plaintiffs and CMHC; defendants were therefore entitled to summary judgment and dismissal.

Court Disposition

Plaintiffs' action dismissed; defendants granted summary judgment on the pleadings and evidence; costs awarded to defendant corporations.

Orders

  • Plaintiffs' claim dismissed
  • Defendants entitled to summary judgment on the pleadings and on the evidence; action dismissed