Royal Trust Corporation of Canada v. 880135 Ontario Limited
Royal Trust Corporation of Canada v. 880185 Ontario Limited, 2008 CanLII 42418
Superior Court of Justice
August 26, 2008
In a retrial ordered by the Court of Appeal the two issues involved were: did the plaintiff devalue the mortgaged property, and was the sale improvident. After a first trial had found to the contrary, Milton Davis and Kelli Preston, on behalf of the plaintiff, argued that the defendants mismanagement had caused the loss. The Court agreed with Mr. Davis and Ms. Preston that the property had been sold in accordance with the standard expected of a mortgagee selling under power of sale. The Plaintiff had obtained two appraisals of the property ; retained a real estate firm; listed the property on the MLS system, and had chosen the best of the four offers made for purchase. Therefore, the sale was not improvident. The Court concluded that Plaintiff could not be blamed for the loss of value. Prior mismanagement had caused the property to lose value.