In Luo et al v. Wang et al., 2026 ONSC 2939, the plaintiffs claimed they had loaned large sums of money (millions) to the defendants and alleged that those funds were used to acquire or improve two residential properties. Based on that, they sought a Certificate of Pending Litigation (CPL) to tie up the properties and prevent their sale, along with related relief. The defendants disputed this, saying any funds were business investments into a company (not personal loans), and denied that the money was used for the properties at all.
The court focused on whether the plaintiffs had a “reasonable claim to an interest in land,” which is the threshold for granting a CPL. This doesn’t require proving the case fully, but there must be evidence showing a genuine issue to be tried about ownership or beneficial interest. The court emphasized that speculation or assumptions—such as timing of payments alone—are not enough, and that CPLs are meant to protect real property interests, not to secure payment of a debt claim.
The judge found there was no evidence linking the plaintiffs’ funds to the purchase or improvement of the properties. In fact, the evidence suggested the defendant property owner (Qiu) did not receive relevant funds from the plaintiffs at all, and the theory that the money was used for the properties was speculative. The court also noted problematic conduct by the plaintiffs, including registering a land notice improperly and without notice. As a result, there was no triable issue supporting a property interest, and the CPL request failed.
The plaintiffs’ motion was dismissed entirely. The court ordered that the improper land notice be removed immediately and refused all requested restrictions on the properties or sale proceeds. The judge added that even if there had been a weak argument for a CPL, it would still have been denied because the harm to the defendants and third parties (including a pending sale) outweighed any benefit. The plaintiffs are left to pursue their claims as a damages action rather than tying up the real estate.
