Court Grants Summary Judgment to Lender in Family Loan Dispute

On December 10, 2024, the Ontario Superior Court of Justice granted a summary judgment in favour of a lender (the "Plaintiff"), determining that she loaned funds to her daughter and her daughters’ husband (the "Defendants"), contrary to her son-in-law's claim that the money was a gift.

In 2017, the Plaintiff loaned the Defendants $200,000 for the purchase of their first home. Following the breakdown of their marriage in 2020, the Defendants were involved in matrimonial litigation. The Plaintiff sought repayment of $163,982.50 from the sale proceeds of the Defendants' matrimonial home.

The Plaintiff presented a promissory note and evidence from her financial consultant to support her claim that the funds were a loan. The Court found that the promissory note contained the son-in-law's electronic signature and acknowledged that he would sign the document. The Court also noted the Plaintiff's hesitation to sign a gift letter and her alterations to it, indicating her intention to make a loan.

The Court concluded that the evidence clearly demonstrated the Plaintiff's intention to make a loan and ordered the Defendants to pay $163,982.50, plus prejudgment interest, from the sale proceeds of their home. The Court determined that a trial was unnecessary as summary judgment would effectively resolve the issue.

Aird & Berlis represented the Plaintiff with a team comprising Anisha Bhardwaj and Max Muñoz.