Background:

• The plaintiffs, including Arkland Homes Inc. and its owner Zhen Kang (Ryan Kang), are property developers alleging bad faith by lenders Ming Wei Liu and Yizi Feng. Defendants claim defaults on loans tied to three properties: 93 Bannatyne Drive and 171/177 Rumsey Road.
• Loans exceeded $10M; disputes include whether repayments were contingent on project completion and alleged mismanagement of a 2023 payment of $2.29M.

Court Decisions:

1. Injunction on Bannatyne Sale:

   • Plaintiffs argued no default occurred as the 2023 payment should have covered debts.
   • Court granted the injunction, citing serious issues about bad faith and payment misapplication.

2. Certificate of Pending Litigation on 171 Rumsey:

   • Plaintiffs alleged the sale was undervalued and involved a non-arm’s-length buyer.
   • Court granted the CPL, highlighting concerns over rushed sales and buyer relationships.

3. Possession of 177 Rumsey:

   • Defendant Huang, who purchased under power of sale, sought possession.
   • Court denied, finding unresolved issues about whether Huang was a bona fide purchaser.

Key Findings:

• Evidence suggested sales were rushed, properties undervalued, and payments misapplied. Allegations included improper evictions and bad-faith conduct by lenders.
• Court consolidated related lawsuits for efficiency and awarded $170,000 in costs to plaintiffs.