Background:
Montaigne Group Ltd. (“Montaigne”), a development company, entered into a Joint Venture Agreement (JVA) with St. Alcuin College for the Liberal Arts Society (“Alcuin College”) to construct a four-story school and event space. Montaigne alleged it had an equitable interest in a portion of the property, the “Montaigne Amenity Space,” and registered a Certificate of Pending Litigation (CPL) after Alcuin College terminated the JVA.

Legal Issues and Rulings:

• Summary Judgment: Alcuin College sought dismissal of Montaigne’s claim, arguing specific performance was unavailable due to ongoing construction. The court rejected this, finding triable issues regarding Montaigne’s interest in the property.

• CPL Cancellation Due to Hardship: Alcuin College argued financial hardship prevented further development. The court found insufficient evidence to establish undue hardship and denied the application.

• Security for Costs: The court ordered Montaigne to post $50,000 in security for costs, paid incrementally, due to its lack of assets and financial instability.

Final Award:
The court did not award costs to either party, as success was divided. Montaigne retained the CPL, but Alcuin College secured security for costs.