The Royal Bank of Canada applied for Summary Judgment. The Respondent straw purchaser asserted that he entered into the transaction at the urging of his former co-worker, who requested that the Respondent help him to purchase a house. The Respondent stated that he was told that the proposed transaction was completely legal, and that everything would be handled officially through a lawyer and banker. The Respondent thought he was helping out a friend and received no compensation for his role.

The Respondent defended the Action on the grounds that the Bank did not act with due diligence in lending him the money, a bank employee was involved in the fraud, and non est factum. He also issued a Third Party Notice alleging negligence against the lawyer that represented him in the transaction.

By an Order dated October 12, 2010, the property was sold to the Bank at its appraised fair market value. The Bank’s Application for a Deficiency Judgment was adjourned and became the subject of the Application, which also included the lawyer’s Application to summarily dismiss the Third Party Notice against him.

The Applications were dismissed in their entirety. Master Mason determined that there were genuine issues for Trial on all of the matters being considered.