Cassels successfully represented Eastern Financial Mortgage Corporation in defending a motion to stay an Ontario action in favour of Florida as the proper forum. Justice Pollak of the Ontario Superior Court of Justice agreed with Eastern Financial, dismissed the stay motion and awarded costs of $54,000.
Eastern Financial, a Florida corporation, brought an action in Ontario to enforce a personal guarantee on a defaulted Florida property against the guarantor, George Athanasoulis. Eastern Financial had already obtained judgment in Florida foreclosure proceedings against the corporation (controlled by Athanasoulis) that owned the Florida property. The Court rejected Athanasoulis’ argument that Florida was the clearly more appropriate forum for the Ontario guarantee action and that there would be overlap between the Ontario guarantee action and the Florida foreclosure action. The Court accepted that Ontario was the “clearly more appropriate forum” and that the Ontario action to enforce the guarantee (a question of personal liability) was separate from the Florida foreclosure action (which only quantified damages owing by the guarantor).
Eastern Financial was represented by Carly Cohen and Jonathan Shepherd (Litigation).