The Defendant, Exall went into receivership, and following the sale of its assets, an amount was held as security for creditors’ or lienholders’ Claims against the Defendant. Some of the creditors and lienholders applied to release the amounts held as security with each of the creditors or lienholders claiming that they had priority with respect to payment.

Nixon J. considered whether two of the prior lienholders whose liens had been discharged should have their Claims summarily dismissed. Justice Nixon reviewed the leading authorities and stated that pursuant to Rule 7.3, an Applicant is entitled to Summary Dismissal if there is no merit to a Claim or part of it. Nixon J. determined that the Claims of the two prior lienholders could be determined summarily since the evidence surrounding these Claims consisted only of records, and Rule 7.2(b) provides that an Affidavit is sufficient to prove the authenticity of records it contains. Nixon J. found that no viva voce evidence was necessary in this case and, in addition to determining how the amount of security should be distributed, summarily dismissed the prior lienholders’ Claims for part of the security amount.