Background

• In 1997, the Defendants, 1259963 Ontario Ltd. & 1259513 Ontario Ltd., purchased Purcell’s Island, Nova Scotia, for $370,000. The purchase was financed in part by a $290,000 Vendor Take-Back (VTB) Mortgage, later assigned to the Plaintiff, The Dawson Group Inc., in 2009.
• The Bay Right of Way, an adjacent mainland parcel, was included in closing documents but was never actually conveyed.
• The Plaintiff claimed the Defendants defaulted on mortgage payments, seeking foreclosure. Defendants denied default, arguing:
  1. The Plaintiff was legally obligated to convey the Bay Right of Way.
  2. A 1999 agreement amended the mortgage to require payments only upon lot sales.
  3. Plaintiff’s property tax payments should be treated as compliance, not default.

Decision

• Summary Judgment Denied – Genuine issues of material fact required trial.
• Court found contractual inconsistencies in closing documents and evidence gaps regarding the Bay Right of Way.
• A 1999 fax referenced mortgage payment adjustments but did not mention the Bay Right of Way issue.

Next Steps

• Case converted to an Application in Court for an expedited hearing, with the judge retaining jurisdiction.
• No final determination on success.
• No monetary award or costs granted yet.