Canada Mortgage and Housing Corp. v. Westsea Construction Ltd. et al., (1992) 10 B.C.A.C. 151 (CA)

JudgeTaggart, Toy and Proudfoot, JJ.A.
CourtCourt of Appeal (British Columbia)
Case DateJune 17, 1991
JurisdictionBritish Columbia
Citations(1992), 10 B.C.A.C. 151 (CA)

CMHC v. Westsea Constr. Ltd. (1992), 10 B.C.A.C. 151 (CA);

    21 W.A.C. 151

MLB headnote and full text

Canada Mortgage and Housing Corporation (respondent) v. Westsea Construction Ltd., Capital Construction Supplies Ltd., West Park Developments Ltd. and View Towers Properties Ltd. (appellants)

(CA012776)

Indexed As: Canada Mortgage and Housing Corp. v. Westsea Construction Ltd. et al.

British Columbia Court of Appeal

Taggart, Toy and Proudfoot, JJ.A.

January 24, 1992.

Summary:

Westsea et al. tendered money to C.M.H.C. to pay out a mortgage. C.M.H.C. claimed entitlement to a bonus for prepayment of the mortgage and a sum for interest which had been paid into court by Westsea et al. The trial judge allowed C.M.H.C.'s claim. Westsea et al. appealed.

The British Columbia Court of Appeal dismissed the appeal.

Mortgages - Topic 2986

Payment of mortgage - Prepayment - Penalty - A mortgage provided if the mortgagor was not in default, it could prepay principal and interest at any time after the 15th anniversary of the interest adjustment date - A bonus of three months interest was charged for the privilege of prepaying - The parties entered an operating agreement confirming the arrangement - After the 15th anniversary, the mortgagor paid a sum to the mortgagee to discharge the mortgage, but denied that the mortgagee was entitled to the bonus - The British Columbia Court of Appeal held that the mortgagee was entitled to the bonus.

Cases Noticed:

Brown v. Cole (1845), 14 Sim. 427; 60 E.R. 424, refd to. [para. 8].

Bovill v. Endle, [1896] 1 Ch. 648 (Ch. D.), refd to. [para. 8].

Smith v. Smith, [1891] 3 Ch. 550 (Ch. D.), refd to. [para. 8].

Browne v. Lockhart (1840), 10 Sim. 420; 59 E.R. 678, refd to. [para. 8].

Cameo Developments Ltd. v. National Life Assurance Co. of Canada (1984), 56 B.C.L.R. 363 (C.A.), refd to. [para. 8].

Prudential Insurance Co. of America v. Hollyburn Properties (Alberta) Ltd. (1985), 58 B.C.L.R. 211 (C.A.), refd to. [para. 8].

Shankman v. Mutual Life Assurance Co. of Canada (1986), 11 O.A.C. 1; 21 D.L.R.(4th) 131 (C.A.), refd to. [para. 8].

Chang v. Brown (1977), 2 B.C.L.R. 65 (S.C.), refd to. [para. 8].

Edmondson v. Copland, [1911] 2 Ch. 301 (Ch. D.), refd to. [para. 10].

Counsel:

Lawrence M. Candido, for the appellants;

   Frank R. Eadie, for the respondent.

This appeal was heard in Vancouver, B.C., on June 17, 1991, before Taggart, Toy and Proudfoot, JJ.A., of the British Columbia Court of Appeal. The following decision was delivered for the court on January 24, 1992, by Taggart, J.A.

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