On January 30, 2023, the Supreme Court of British Columbia rendered its decision in an alleged mortgage fraud matter in which the central question was whether the respondent, 0694813 B.C. Ltd. (“813”), was entitled to rely on the petitioner’s corporate register when transacting with the petitioner’s registered director to lend over $1.2 million to the petitioner. The respondent, 813, argued that it was entitled to rely upon the indoor management rule to uphold the loan transaction and enforce the mortgage securing the loan. The Honourable Justice Loo found in favour of 813, holding that 813 was entitled to the protection of the indoor management rule as codified in the British Columbia Business Corporations Act (s. 146(1)).
Cassels represented 069813 B.C. Ltd.