Background:

• Melissa and Nelda Taurasi are spouses of Carlo and Dino Taurasi, founders of StateView Homes, a family-owned residential construction company.
• StateView Homes became involved in a $37 million cheque-kiting fraud discovered by TD.
• TD negotiated a settlement with StateView, including securing a global charge (“TD Charge”) over various properties, including those owned by Melissa and Nelda.

Applicants' Claims:

• They argued the TD Charge was invalid as their consent to it was obtained under undue influence, with no independent legal advice or personal benefit.
• They sought the removal of the TD Charge from their properties.

Court’s Analysis:

• Undue Influence:
  • The court found no presumption of undue influence arose as the Applicants willingly signed the necessary documents.
  • Evidence showed that Melissa and Nelda were aware of and involved in the Settlement Agreement process, benefiting from StateView’s continued operations.
  • Melissa and Nelda later contradicted their claims by suing their lawyers for negligence, alleging they had received legal advice during the settlement.
• Other Claims:
  • Nelda’s claim of intoxication during signing was unsupported by evidence.
  • The court emphasized that TD acted reasonably and relied on representations made by the Applicants' lawyers during the settlement.

Outcome:

• The application was dismissed.
• Costs of $90,000 were awarded to TD, payable by Melissa and Nelda.