Issue: The primary issue was whether the Cabanas should provide security for costs to continue their lawsuit against eight of the ten defendants.
Background:
The Cabanas purchased a property in 2010 and built a new house on it. They later discovered that parts of the new house extended beyond their property line and onto the foreshore, causing a title defect.
They attempted to sell the property in 2018, but the sale failed due to the title issue. Subsequently, they defaulted on their mortgage, leading to the property being sold by the mortgagee, Newfoundland and Labrador Credit Union (NLCU).
The Cabanas then filed a lawsuit against the defendants, including real estate agents, lawyers, a surveyor, a contractor, and the NLCU, claiming they were responsible for the title defect and their financial losses.
Court’s Decision:
The court granted the defendants' applications for security for costs, requiring the Cabanas to pay $30,000 by June 30, 2023. If they fail to do so, the defendants can seek to have the Cabanas’ claim struck out.
The court found the Cabanas' claim to be frivolous, vexatious, and an abuse of process, noting that the Cabanas were aware of the encroachment issue but were now attempting to shift responsibility onto others.
Costs: The Cabanas were also ordered to pay the costs of the interlocutory applications under Column 3 of the Scale of Costs.
