Background:
The dispute arose from the $4.5 million holdback of proceeds from the court-ordered sale of a commercial property jointly owned by Jenor Steel Incorporated ("Jenor") and 466372 B.C. Ltd. ("466"). The sale, made under the Partition of Property Act, was to secure debts owed to Sonic Holdings Ltd. ("Sonic"): a mortgage debt and a judgment debt. Jenor sought $1 million each to itself and 466 from the holdback, arguing that it over-secured the debts.

Legal Issues:
The court had to determine whether the $4.5 million holdback was excessive for securing the debts and whether Sonic’s additional claim of $715,622 for unjust enrichment should be considered.

Key Arguments:
Jenor argued that the debts totaled only $1.156 million plus interest and that retaining $4.5 million in trust was excessive. The respondents, including Sonic, claimed total amounts exceeding $1.938 million and opposed any distribution until all debts and claims, including unjust enrichment, were satisfied.

Judgment:
The court ruled that the $4.5 million holdback was excessive and reduced it to $2.5 million, sufficient to secure the debts. It rejected Sonic’s unjust enrichment claim as unrelated to the property. The court ordered the release of $1 million each to Jenor and 466, leaving $2.5 million in trust.

Costs Awarded:
Jenor was awarded its costs for the application. Financial terms were not specified.