Executive Summary: Key Legal and Evidentiary Issues

• Templar Core Corporation failed to file the required summary of its defense and supporting documentation within the legal deadline.

• The notice of exercise of a hypothecary right was sent to an incorrect email address, making it invalid.

• Under Québec civil law, valid service of a pre-notice is a mandatory condition for maintaining a hypothec.

• The court found that the legal hypothec had extinguished due to the invalid pre-notice of exercise.

• The plaintiff’s request for cancellation of both registry entries was granted due to procedural and substantive defects.

• Judgment was rendered by default after the defendant’s counsel failed to appear at the scheduled hearing.

Facts and procedural background

Edwidge Toussaint filed a proceeding on March 11, 2025, against Templar Core Corporation to have two entries removed from the Québec land registry system: a notice of legal hypothec and a pre-notice of exercise of a hypothecary right. These were registered against his property located on boulevard Saint-Jean-Baptiste in Montréal. Toussaint also claimed damages in relation to the impact of these registrations on his ability to obtain financing. On the same day, Templar filed a response indicating its intention to contest, but did not follow up with a proper summary of its defense as required by the Code of Civil Procedure.

By May 1, 2025, Toussaint had filed the procedural notice required under article 535.4 C.p.c. Templar, however, failed to file the necessary summary of its defense under article 535.6 C.p.c., nor did it disclose supporting documents or indicate its evidence plan. On July 2, Toussaint’s counsel warned Templar’s counsel that they were in default and requested compliance by July 4, otherwise he would proceed to seek default judgment.

No response was received, and on July 9, 2025, the court ordered a case management conference. Before it could be held, Toussaint’s counsel filed a formal request for judgment by default on July 17, citing urgent prejudice due to the disruption in financing caused by the property encumbrances. The court received and reviewed the request on July 24, during which the defendant’s counsel did not appear.

Decision and outcome

The court examined the validity of Templar’s pre-notice of exercise. Evidence showed that the notice, dated October 25, 2024, was sent by email to an incorrect address. Toussaint affirmed under oath that he never received it and that the address used was not his. Since proper service of this notice is a strict legal requirement under article 2757 of the Civil Code of Québec, the court deemed the pre-notice invalid. Without a valid pre-notice, the legal hypothec registered by Templar also ceased to be valid, as per article 2727 C.c.Q.

The court therefore ordered the removal of both the legal hypothec and the pre-notice of exercise from the land registry. The Land Registry Officer for the Montréal district was instructed to carry out the deletions upon receipt of a formal request and payment of applicable fees. Costs were reserved to follow the final determination of the broader claim. The decision favored Toussaint, effectively clearing the encumbrances on his property.