In 2496582 Ontario Inc. v. Duca Financial Services, 2018 ONSC 3749 (CanLII) Corthorn J. was asked on June 5 2018, to grant an injunction, against the mortgagee in possession acting under power of sale, to enjoin the sale scheduled for June 11 2018.
Corthorn J. denied the injunction. Corthorn J. (at para 26) made reference to Frometa v. Oliveira, 2014 ONSC 4382 (CanLII), at para. 22, which explained that:
‘There must be extraordinary evidence of a defective foreclosure or sale process for equity to intervene subsequent to a sale of the Property: 1224948 Ontario Ltd. v 448332 Ontario Ltd. (2000), 2000 CanLII 16927 (ON CA), 141 OAC 100, at para 1 (Ont CA).’
takeaway: When going for an injunction against the mortgagee in possession to prevent a sale, the progress of the sale process is an important factor. Equity will be harder to engage after the mortgagee has entered into an agreement of purchase and sale.
