Is a mortgagee entitled to sue a mortgagor for negligence against the mortgagee?
British Columbia, Canada
The following excerpt is from 0742848 B.C. Ltd. v 426008 B.C. Ltd., 2019 BCSC 1869 (CanLII):
Finally, I note that, to the extent that this issue has been canvassed in British Columbia, the weight of judicial authority is against the imposition of a duty of care on a mortgagee. This issue was most recently considered by Matthews J. in Gadsby v. British Columbia (Attorney General), 2019 BCSC 1596 [Gadsby], in the context of a negligence claim brought subsequent to a court approved sale. In dismissing the mortgagor’s negligence action against the mortgagee, Matthews J. stated:
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