Ciabarri v. Wallerstein, 2025 ONSC 2800 – Summary Judgment Granted to Lender
Overview
Our lawyers, Sara Mosadeq and Francesca Sgambelluri, successfully represented the lender, Reman Ciabarri, in a mortgage enforcement action brought against borrowers Edward George Wallerstein and Katharine Nikalaidis.
Background
In September 2021, the Defendants borrowed $570,000 from the Lender, secured by a mortgage. The loan carried 8% annual interest with monthly interest-only payments, maturing December 1, 2022. A Renewal Agreement signed in December 2022 extended the term, raised the interest rate to 10.5%, and added an $8,550 renewal fee.
The Defendants defaulted shortly after renewal. A series of Notices of Sale were issued in 2023 and 2024. Despite some payments in early 2023, the Defendants remained in default. A third Notice of Sale issued in May 2024 reflected the updated interest rate and Renewal Fee. The Lender brought a motion for summary judgment.
Court’s Decision
The Court granted judgment in full to the Lender:
- No repudiation: The Defendants argued both parties had repudiated the Renewal Agreement. The Court disagreed, finding the Defendants' payments after the first default showed they intended to continue under the agreement.
- No estoppel or other defences: The Court rejected the Defendants’ claims of estoppel, duress, lack of legal advice, and misapplication of payments, citing lack of evidence.
- Amounts owing confirmed: The Court upheld the 10.5% interest rate, the Renewal Fee, and the Lender’s right to enforce the agreement.
Outcome
The Court awarded the Lender $578,550, confirmed entitlement to possession of the property, and granted leave to issue a writ of possession. The decision underscores the enforceability of clear loan terms and the importance of prompt payment compliance.