Background:
- Esther Gerstel Inc. (EGI) loaned Denise Michelle Scott $815,000 on August 17, 2021, secured by a mortgage on her Toronto property.
- The mortgage terms included: 22% annual interest, full payment due August 12, 2022, and a $40,000 lender fee.
- A three-month renewal was agreed upon in August 2022 for $75,000 (including a $30,175 renewal fee and prepaid interest).
Legal Issues:
- EGI claimed Scott owed $1,123,071.19 (including two $30,000 renewal fees from November 2022 and February 2023).
- Scott admitted she owed some money but disputed the total amount and claimed she lacked complete mortgage documentation.
Decision:
Summary Judgment Granted: Scott owed:
- $815,000 (principal)
- $248,071.19 (interest up to February 1, 2024)
- 22% compounded monthly interest continuing to accrue.
- Possession Order Granted: EGI may take possession after April 19, 2025, unless Scott pays in full.
- Renewal Fees Denied: Court found no evidence Scott agreed to the November 2022 and February 2023 renewals.
Next Steps:
- Scott has 45 days to pay before eviction.
- Cost submissions due by April 7, 2025, if not agreed upon.
