• Key Facts:
  • In 2000, Dalpha purchased properties from Judith Farrage, financed by a vendor-take-back mortgage (VTB) of $442,000.
  • The mortgage went into default, leading to a 2007 default judgment of $453,223.92 in favor of Ms. Farrage. She took possession of the properties, managed by her husband, Edmund Farrage.
  • Dalpha remained on title and began seeking an accounting for the management of the properties and related revenues.
• Main Issues:
  • Dalpha claimed it was owed over $1 million due to mismanagement and lack of proper accounting from the Farrages.
  • The respondents disputed this amount and provided minimal documentation, leading to forensic accounting by Ms. Jennifer Lynch, hired by Dalpha.
• Rulings:
  • The court agreed that Judith Farrage was required to account for her management of the properties but dismissed the claims against Edmund Farrage.
  • The court sided with Dalpha regarding the accounting, using Ms. Lynch’s reports due to the lack of supporting documents from the Farrages.
  • Property taxes paid by Ms. Farrage during her possession were factored into the final judgment.
• Final Decision:
  • Judith Farrage must pay Dalpha a recalculated amount based on Ms. Lynch’s findings, with adjustments for property tax arrears. ($95,728)
  • Interest, both pre- and post-judgment, is to be paid by the respondents.

The parties were encouraged to settle on costs, or submit further arguments to the court