Background:

• The appellants, Maryam Furney and Alex Aidan Furney, filed a claim related to mortgage transactions.
• They alleged that defendant Steven Hazan, a mortgage broker, misrepresented that $580,000 was placed in trust with lawyer Samir Chhina, but the funds were later misused.
• They also claimed that Mr. Hazan instructed Mr. Chhina to register a collateral mortgage without their consent, which led to financial losses.
• The appellants sought damages of $8-9 million.
• The motion judge struck the claims against Dominion Lending Centres Inc. ("Dominion") and Mr. Chhina under Rule 21.01 and awarded costs against the appellants.

Court’s Decision:

1. Claim Against Dominion - Appeal Dismissed:

   • The court upheld the motion judge’s decision, finding no factual link between Dominion and the appellants’ allegations.
   • The court denied leave to amend the pleadings, as there was no viable claim against Dominion.
   • The appellants were ordered to pay Dominion $10,000 in appeal costs.

2. Claim Against Mr. Chhina - Appeal Allowed:

   • The court ruled that the motion judge erred in striking the claim against Mr. Chhina.
   • Two key allegations—(i) unauthorized mortgage registration and (ii) misappropriation of trust funds—warranted further legal examination.
   • The motion judge incorrectly found that Mr. Chhina was protected from liability merely because he followed client instructions.
   • The motion judge also erred in applying the doctrine of res judicata, as the previous ruling did not clearly resolve the same legal issues.
   • The costs order against Mr. Chhina was overturned.