The following excerpt is from British Columbia (Technology, Innovation and Citizens’ Services) v. Columbus Real Estate Inc., 2018 BCCA 340 (CanLII):
There is a further problem with the reasoning. It is well established that factual inferences cannot be drawn unless there is a rational connection between the proven facts and the fact to be inferred: see the discussion of some of the leading cases in ICBC v. Atwal, 2012 BCCA 12 at paras. 40-42. In this case, however, there is no logical or rational connection between the fact that the mortgage was to remain on title and the inferred fact that a credit had been given. A mortgage may remain on title for many reasons. It cannot be arbitrarily assumed that the reason is that a credit has been given to the transferee and that the transferee is (as between itself and the transferor) assuming liability for the mortgage. The judge made a palpable and overriding error in drawing that inference.
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