Key Issues in the Case

1. Defendants’ Motion for Summary Judgment:

   • Claim: Plaintiffs sustained no damages and breached the immediate disclosure rule regarding a settlement.
   • Court Ruling: Motion dismissed; genuine issues of material fact exist requiring trial.

2. Alleged Lack of Damages:

   • Plaintiffs claim damages of $7.5M (reduced from $16M) for surreptitious mortgage discharges by the defendants.
   • Defendants argue repayments exceeded claims, negating damages.
   • Court’s Finding: Conflicting evidence regarding whether plaintiffs relied on fraudulent statements necessitates trial.

3. Disclosure of Settlement Agreement:

   • Defendants allege non-compliance with the immediate disclosure rule after a settlement with Millar Companies.
   • Court’s Finding: Settlement did not significantly alter the litigation dynamics, and disclosure within 16 days was deemed timely.

Outcome

• Defendants’ Motion: Denied.
• Costs Awarded: $95,000 to the plaintiffs on a partial indemnity basis.