Bay Pharmacy Ltd. v. 056867 N.B. Ltd., (1998) 208 N.B.R.(2d) 207 (TD)

• Judge: Riordon, J.
• Court: Court of Queen's Bench of New Brunswick (Canada)
• Case Date: August 26, 1998
• Jurisdiction: New Brunswick
• Citations: (1998), 208 N.B.R.(2d) 207 (TD)

Bay Pharmacy v. 056867 N.B. (1998), 208 N.B.R.(2d) 207 (TD);

    208 R.N.-B.(2e) 207; 531 A.P.R. 207

MLB headnote and full text

[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

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Temp. Cite: [1999] N.B.R.(2d) TBEd. JA.014

Bay Pharmacy Ltd., a body corporate, with place of business at Baie Ste. Anne, New Brunswick (plaintiff) v. 056867 N.B. Ltd., a body corporate with Head Office at the City of Bathurst, New Brunswick (defendant)

(N/C/135/98)

Indexed As: Bay Pharmacy Ltd. v. 056867 N.B. Ltd.

New Brunswick Court of Queen's Bench

Trial Division

Judicial District of Miramichi

Riordon, J.

August 26, 1998.

Summary:

The defendant constructed a building for the plaintiff in accordance with a construc­tion contract. The plaintiff mortgaged the building with the defendant. The plaintiff refused to pay the remaining amount due on the mortgage. The defendant exercised its remedy of power of sale. The plaintiff sued the defendant for deficiencies in the build­ing's construction. The plaintiff sought an injunction to prohibit or stay the scheduled mortgage sale pursuant to the terms of a mortgage between the parties.

The New Brunswick Court of Queen's Bench, Trial Division, allowed the applica­tion with conditions.

Injunctions - Topic 6125

Particular matters - Mortgage foreclosures - Restraining power of sale - The defen­dant constructed a building in accordance with a construction contract with the plain­tiff - The plaintiff mortgaged the building with the defendant - The plaintiff did not pay the outstanding balance of the mort­gage - The defendant exercised its remedy of a power of sale - The plaintiff sued the defendant for deficiencies in the building's construction - The plaintiff sought an injunction to prohibit or stay the scheduled mortgage sale - The New Brunswick Court of Queen's Bench, Trial Division, ordered that an injunction issue against the defen­dant, prohibiting or staying the scheduled mortgage sale - The injunction was condi­tional upon the plaintiff paying security into court - There could be irreparable harm to the plaintiff if the sale proceeded, which would be difficult to quantify in monetary terms - The balance of conven­ience test favoured the plaintiff.

Mortgages - Topic 8104

Statutory and contractual rights - Stay of power of sale - Grounds for - [See Injunc­tions - Topic 6125 ].

Cases Noticed:

Trans Canada Credit Corp. v. Morehouse (1997), 193 N.B.R.(2d) 308; 493 A.P.R. 308 (T.D.), refd to. [para. 5].

Nash v. Canadian Imperial Bank of Com­merce (1996), 175 N.B.R.(2d) 211; 446 A.P.R. 211 (T.D.), refd to. [para. 5].

Daly et al. v. Petro-Canada et al. (1994), 153 N.B.R.(2d) 164; 392 A.P.R. 164 (T.D.), refd to. [para. 5].

Calvert v. Municipal Mortgage Corp. (1967), 147 N.B.R.(2d) 161; 375 A.P.R. 161 (C.A.), refd to. [para. 5].

Mar-Sand Properties Ltd. v. Central Mort­gage & Housing Corp. (1975), 12 N.B.R.(2d) 597; 10 A.P.R. 597 (Q.B.), refd to. [para. 5].

American Cyanamid Co. v. Ethicon Ltd., [1975] 1 All E.R. 504; [1975] A.C. 396 (H.L.), refd to. [para. 7].

Canada East Manufacturing Inc. v. Harvey and Maritime Wire Co. (1996), 183 N.B.R.(2d) 293; 465 A.P.R. 293 (C.A.), refd to. [para. 7].

Counsel:

Thomas Prince, for the plaintiff;

Eliott Levasseur, for the defendant.

This application was heard at Miramichi, New Brunswick, on August 26, 1998, by Riordon, J., of the New Brunswick Court of Queen's Bench, Trial Division, Judicial District of Miramichi, who delivered the following oral decision on the same date.