56 | fall 2016 cmba-achc.ca CMB MAGAZINE
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F
ollowing a recent ruling by
the Ontario Court of Appeal,
the embattled Donald Trump must
face Toronto investors in court
over alleged misrepresentations involving
his 65-storey hotel in the city's bustling
downtown business district.
e decision overturns a lower-court
decision that sided with Trump and other
defendants. Investors claim they were
misled into purchasing units in the Trump
International Hotel & Tower that were part
of the hotel's rental pool, and so were to be
rented out at luxury hotel rates. According
to the investors, the sales tactics used by the
developer grossly overstated expected hotel
occupancy rates, which have not panned out.
e investors are now looking to rescind their
sales agreements, as well as claim for damages,
deposit, loss of opportunity and other relief.
While the court tossed claims for
misrepresentation and breaches-of-securities
rulings, Trump and others must still answer to
claims of "oppression, collusion, [and] breach
of fiduciary duties." – Samantha Gale
Beating the bank
A couple in the Cape Breton town of New
Waterford have won an unprecedented
judgment against their bank. e couple
borrowed $18,000 in 2003 to purchase property,
and had paid the principal down to $10,000
before falling on hard times and going into
default on the mortgage. e bank proceeded to
foreclose on the land and claim a balance owing
by the couple on the mortgage covenant.
e couple attempted to pay the bank the
balance owing on the mortgage (just over
$10,000), but this was rejected by the bank.
Instead, the bank claimed a deficiency from
the couple of almost $17,000, as the bank had
acquired the property at a foreclosure auction
for only $1,150 and then sold it to a realtor
for just $4,000.
In the end, the court found the bank had
sought an unwarranted and extremely expensive
remedy against the couple and reduced the
amount owing to only $6,877. Justice Gerald
Moir said in his ruling, "ere is no evidence that
any thought was given by the bank to the efficacy
or the efficiency of using foreclosures and sale to
enforce a small loan against a vacant lot in a very
depressed community." – Samantha Gale
Trumped-Up
Case
A
Donald Trump and
others must still
answer to claims
of "oppression,
collusion, [and]
breach of fiduciary
duties"
