Construction DJL inc. c. Excavation company IAI inc.
Key Facts
On March 13, 2024, DJL obtained a default judgment against Excavation inc. and Bruno Iozzo for $88,020.49, plus 18% annual interest.
The claim against Excavation inc. was based on a service contract, while the claim against Bruno Iozzo was based on a personal guarantee letter he had signed.
On April 10, 2024, DJL registered a legal mortgage against Iozzo’s house as security for the judgment.
On May 13, 2024, Excavation inc. and Iozzo filed motions for revocation of the default judgment. The court deemed these motions admissible on June 7, 2024 and suspended enforcement of the judgment.
Iozzo then requested cancellation of the legal mortgage on his house, arguing that the judgment's suspension should remove the mortgage.
Court’s Decision
The court rejected Iozzo’s request to cancel the legal mortgage.
Reasoning:
Burden of Proof Not Met: Iozzo failed to show the legal grounds under Article 3063 of the Civil Code of Québec (C.c.Q.) for removing the mortgage (e.g., improper registration, nullity, extinguished debt).
No Proven Harm: Iozzo argued that the mortgage harmed him financially, but he did not provide sufficient evidence of specific harm.
Judgment Not Overturned: The revocation motion was admitted, but the March 13, 2024, judgment remained valid, meaning the mortgage was still justified as a conservatory measure rather than enforcement.
Final Ruling
The court denied Iozzo’s request to remove the legal mortgage.
