The defendant, Eric Manirambona, sought to set aside a default judgment for foreclosure on a commercial property at 188-190 Raglan Street, Renfrew, Ontario, and convert the proceeding into a judicial sale.
The Ontario Superior Court of Justice dismissed the motion.
Key Facts:
Manirambona purchased the property in 2021 for $290,000 with a $240,000 mortgage from the plaintiff, Pawan Gupta, at 15% annual interest, maturing on March 1, 2022.
After defaulting, foreclosure proceedings began in September 2022. A default judgment was issued on June 7, 2023.
Manirambona claimed he misunderstood foreclosure consequences, believing tenant rent attornment relieved his obligation.
Court’s Analysis:
Delay in Motion:
Despite knowing of foreclosure as early as September 2022, Manirambona only acted in October 2023. The court ruled this unreasonable.
Financial Inability to Pay:
No evidence of immediate or short-term payment ability. His residence was listed for sale with no equity available.
Lack of Refinancing Efforts:
Rejected a $390,000 offer in January 2023; no proof of alternative financing.
Equities & Prejudice:
Gupta made necessary repairs, increasing rental value. The court found no special circumstances justifying reversal.
Final Decision:
Motion dismissed. Costs to be determined by agreement or written submissions.
