In 2280570 Ontario Inc. v. Vrisakis, 2017 ONSC 4513 the plaintiff entered into an agreement of purchase and sale with the defendant for the sale of a property. The defendant failed to complete the purchase and defaulted on the agreement. The plaintiff sought a Mareva injunction to prevent the defendant from dissipating their assets, including real estate, during the legal proceedings.
The Ontario Superior Court of Justice granted the Mareva injunction in favor of the plaintiff. The Court found that the plaintiff had a strong prima facie case and that there was:
- a real risk of dissipation of the defendant’s assets,
- including the real estate in question.
The injunction was deemed necessary to preserve the plaintiff’s ability to enforce the Judgment and secure the defendant’s obligations under the purchase agreement.
This case highlights how a Mareva injunction can be utilized against a defaulting purchaser in a real estate transaction to safeguard the seller’s interests and ensure that assets, including the real property itself, are preserved pending the resolution of the legal dispute.
Brian Madigan LL.B., Broker