• Issue: Dispute over a commercial mortgage for Browns' Clearwater West Lodge. The purchase price was $3.1 million, with $2,735,471 secured by a vendor take-back mortgage. The Browns allege Labonte failed to make mortgage payments from February 1, 2023.

Legal Proceedings

• Injunction Request: Browns sought to prevent Labonte from enforcing a notice of sale (NOS) demanding $2,670,357.83.
• Previous Ruling: Fregeau J. consolidated the actions without deciding on the merits.
• Summary Judgment Motion: Labonte sought summary judgment for property sale and mortgage payment.

Court's Analysis (RJR-MacDonald Test)

1. Serious Issue to be Tried: Validity of the set-off clause.
2. Irreparable Harm: Potential sale of the Lodge could harm the Browns irreparably.
3. Balance of Convenience: Did not favor the Browns, as they stopped paying the mortgage for 17 months.

Order

• Adjournment: Motion adjourned with an interim prohibition on enforcing the NOS.
• Payment Schedule: Browns must pay:
  • $25,000 by June 28, 2024
  • $25,000 by July 31, 2024
  • $50,000 by August 30, 2024
  • $100,000 by September 30, 2024
• Future Steps: Case conference post-September 30, 2024, to discuss further actions.
• Award: $3,000 to Labonte for June 6, 2024, attendance.
• Interim Decision: Neither party is definitively successful at this stage.