Agricultural Law Netletter - Thursday, December 7, 2017 - Issue 385

HIGHLIGHTS

* The Ontario Court of Appeal has set aside the decision of a Justice of the Ontario Superior Court who refused to set aside a foreclosure order which resulted in a substantial winfall to a mortgage lender from the foreclosure of a farm. The value of the farm substantially exceeded the balance owing on the mortgage. Although the farmer, who had serious mental and physical illnesses, had failed to defend the proceedings throughout, the Court felt compelled to intervene to grant relief against foreclosure. The decision considers the elements involved in granting relief against foreclosure and in relation to the "winfall issue" the fact that a mortgage is intended to operate as security for the payment of a debt only. The Court found it unnecessary to deal with issues raised by the Superior Court Justice in relation to whether the Farm Debt Mediation Act applied. (Winters v. Hunking, CALN/2017-062, [2017] O.J. No. 6144, Ontario Court of Appeal)