Background

• The plaintiffs (1255717 Ontario Ltd., 1255705 Ontario Ltd., 1290976 Ontario Ltd., and Marino Rakovac) initiated the Current Action against the defendants (Glenrio Financing Limited and Ancaster Choice Limited) following an earlier Mortgage Action, in which the defendants successfully obtained summary judgment on December 3, 2019.
• The Mortgage Action involved five mortgages, with the primary dispute being whether the Lenders had agreed to fund a remediation and rezoning project until completion. The court found no such agreement.

Key Legal Issues

• Issue Estoppel & Action Estoppel: The court held that the claims in the Current Action had already been adjudicated in the Mortgage Action and were barred.
• Abuse of Process: The court ruled that allowing re-litigation would undermine judicial integrity and waste resources.

Court’s Findings

• The Current Action raised claims identical or closely related to the Mortgage Action defenses.
• The Borrowers’ allegations—including breach of duty of good faith, misrepresentation, conflict of interest, and obstruction of refinancing—were previously addressed or could have been raised on appeal (Glenrio Financing Limited v. Rakovac, 2022 ONCA 677).
• The court dismissed all claims as res judicata (already decided), ruling that they could not be re-litigated.

Final Decision

• Current Action dismissed due to issue estoppel, action estoppel, and abuse of process.
• Costs submissions were invited if parties could not agree.
• The judgment does not specify an exact monetary amount for costs or damages in the Current Action.