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Note: In connection with a dispute regarding title to land being developed, The Neighborhoods of Cornell, Inc. (Claimant) sued 1440106 Ontario Inc. (Developer) and filed a lien clouding title of the property by noticing the litigation. The court denied Developer's motion to discharge the lien but required Claimant to post security payment for CA$1,000,000. It did so by "means of a letter of credit deposited with Accountant and it remain[ed] in place ... subject to certain drawings to satisfy costs awards."

When summary judgment was awarded to Claimant and the lien discharged, it sought damages which were awarded in the amount of CA$1,850,000. Claimant then moved to have the LC applied to setoff this award. The Ontario Superior Court of Justice, MacLeod, Master, granted the motion and issued an order authorizing Accountant "to draw down the letter of credit and to pay out the balance to the defendants in partial satisfaction of this award."

[JEB/hah]

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