Key Facts

• Flexpark Inc. loaned $375,000 to Patrizia Ercolani in January 2018, secured by a second mortgage on her property.
• Mortgage matured on August 1, 2018, extended to September 1, 2018. No payments were made after August 1, 2018.
• Flexpark sought $375,000 plus 15% annual interest and possession of the property.
• Statement of claim issued October 1, 2018; notice of sale issued September 19, 2018, requiring payment by October 26, 2018.

Defendant’s Arguments

• Mortgage was harsh and unconscionable under the Unconscionable Transactions Relief Act (UTRA).
• Alleged undue influence, duress, and lack of bargaining power.
• Claimed only $328,125 was advanced due to prepaid interest and lender fees.
• Argued the proceedings were premature under the Mortgages Act.

Court’s Findings

• Summary judgment granted: No genuine issue for trial.
• Loan amount reduced: Mortgage enforceable for $356,250 (excluding lender fee of $18,750).
• Unconscionability rejected: Interest rate (15%) and fees were high but not unfair given the risk.
• No evidence of duress or undue influence.
• Procedural issue corrected: Court retroactively validated the early statement of claim.
• Possession granted: Flexpark entitled to possession, subject to verifying occupancy.

Final Judgment

• Ms. Ercolani must pay:
  • $356,250 plus 15% interest from August 1, 2018.
  • Costs pending determination.