Costs Denied Due to Unreasonable Conduct in Enforcing Mortgage
⚖️ Legal holding
A mortgagee is not entitled to indemnity costs if it acts unreasonably in enforcing the mortgage.
📚 Full judgment
The summary, holding and questions above are VadeLab’s own material. The official decision itself is published by the court, and we do not reproduce it on this page.
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⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The mortgagee failed to prove its debt because the certificate it relied upon did not conform to the agreement.
- The court found some provisions of the loan agreement to be unjust and declared them void under the Contracts Review Act.
- The mortgagee's cross-claim for judgment and possession failed because it could not prove the amount owed.
- The finance documents did not clearly state that the mortgagee's costs should be paid on an indemnity basis.
- The mortgagee acted unreasonably by failing to prove its debt in its foreclosure action.
❌ Tends to be rejected
- The mortgagee's defense of the borrower's claims was not considered unreasonable conduct.
- The mortgagee's argument that the plaintiffs' success was insignificant was not accepted.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What was the dispute about?
The dispute was about whether the mortgagee was entitled to indemnity costs after failing to provide a valid certificate in enforcing the mortgage.
How did the court decide, and why?
The court decided that the mortgagee was not entitled to indemnity costs because its conduct in enforcing the mortgage was unreasonable.
What was the argument that mattered most?
The argument that mattered most was that the mortgagee's failure to provide a valid certificate was unreasonable, thus denying indemnity costs.
Was the decision for or against the person who brought the case?
The decision was against the mortgagee.
What does this mean for someone in a similar situation?
Someone in a similar situation should ensure that their conduct in enforcing a mortgage is reasonable to avoid being denied indemnity costs.