Canada Case Law

Hong v. Yin

Court

British Columbia Court of Appeal

The settlement provision allowing immediate entry of judgment on default is an acceleration clause, not a forfeiture, and s.25 of the Law and Equity Act applies only to covenants in a mortgage of land or agreements for sale of land; because the settlement agreement did not create a legal or equitable mortgage or an agreement for sale and the CPL was not a pledge created by the agreement, relief from forfeiture under s.24/25 was unavailable; alternatively, even if available, the appellants failed to satisfy the discretionary criteria for relief.

Source excerpt

• Relief from forfeiture
• Acceleration clause
• Equitable mortgage
• Consent judgment
• Certificate of pending litigation
• Discretionary equitable relief

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Hong v. Yin

Court

British Columbia Court of Appeal

The appeal from a BC Supreme Court order stayed execution of a consent judgment and refused security for costs, pending determination of the appeal.

• Relief from forfeiture
• Stay of execution
• Security for costs
• Consent judgment
• Acceleration clause
• Law and equity act s.25

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Yin v. Hong

Court

Supreme Court of British Columbia

The court dismissed a bid for relief from forfeiture after a settlement default, holding the judgment clause was an acceleration clause and s. 24 LEA did not apply.

• Relief from forfeiture
• Acceleration clause
• Consent judgment
• Certificate of pending litigation (cpl)
• Execution and garnishment
• Unclean hands

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Aros Investments v. MacDonald

Court

Supreme Court of British Columbia

The court held that Article 4 preserved the earlier Baker debt, so Baker’s later payments did not acknowledge MacDonald’s debt. The claim was statute-barred.

• Consumer proposal
• Limitation period
• Assumption of mortgage
• Acceleration clause
• Estoppel
• Merger of obligations

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Horizon Capital Holdings Inc. v. GeoTility Systems Corp.

Court

Supreme Court of British Columbia

The court interpreted “cash on the balance sheet” as gross cash, not net cash less bank indebtedness, and held the balance of sale was triggered in 2018 and 2019.

• Contract interpretation
• Acceleration clause
• Penalty doctrine
• Free cash flow calculation
• Accounting standards and financial statement interpretation
• Contract-interpretation

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Pavlov v. Edwards

Court

British Columbia Court of Appeal

The Court of Appeal dismissed Mr. Pavlov’s appeal from summary judgment enforcing a personal guarantee after a missed VTB interest payment triggered acceleration.

• Vendor take-back loan
• Promissory note
• Personal guarantee
• Summary judgment
• Acceleration clause
• Abuse of process

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The Toronto-Dominion Bank v. Buchholz

Court

Supreme Court of British Columbia

The court dismissed a borrower's application for relief from a mortgage acceleration clause under the Law and Equity Act because the mortgage had already matured.

• Acceleration clause
• Relief from acceleration provisions
• Mortgage maturity
• Costs
• Mortgage-law
• Acceleration-clause

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Saini v. Jyoti

Court

Supreme Court of British Columbia

The court granted judgment to the plaintiff for the unpaid share-purchase price and interest, rejecting duress and misrepresentation arguments.

• Share purchase agreement
• Promissory note
• Acceleration clause
• Default on payment
• Duress and misrepresentation
• Remedies - judgment for debt

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911 Priority Corporation v. Murray

Court

Court of Appeal for Ontario

The landlord was entitled to re-enter because the tenant failed to pay the accelerated rent that became immediately due after the August 2018 notice and that uncured breach persisted through the date of re-entry; acceptance of some rent did not constitute waiver because the lease excluded waiver, therefore the trial judge erred and the application for wrongful termination must be dismissed.

Source excerpt

• Lease forfeiture
• Re-entry
• Acceleration clause
• Waiver

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Cymax Stores Inc. v. Coleco Investments Inc.

Court

Supreme Court of British Columbia

The court held that a lender-sought repayment after acceleration was not a “prepayment” under the loan agreement, so no prepayment amount was payable.

• Prepayment penalty
• Loan agreement interpretation
• Acceleration clause
• Events of default
• Parol evidence rule
• Prepayment-penalty

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