The B.C. legal system is put under fire as a lawsuit grew into an $8-million notary fraud case involving parties from real estate transactions.
It all started in 2013 when Agatha Chung was hired by Hsui-Wen Lin and Min Sheng Tang to refinance the mortgage of their homes. Documents proved that Lin and Tang applied financial loan from CIBC and the transactions were managed by Timothy Ko. But the hired Chung vanished along with the money of Lin and Tang. The case questions as who will hold the loss between Lin and Tang and the CIBC.
Last 18 December, B.C. Supreme Court Judge John Steeves made the decision to let CIBC shoulder the loss during B.C. Court of Appeal trial. Judge Steeves the verdict founded on Lin and Tan not able to utilize from the mortgage money and was dispatched to Chung. The Judge argued that the bank still owned the money and mortgage was void despite the completed notaries of the transaction.
However, lawyers under the real estate practice argued that "decision could have wider repercussions if they can't rely on the undertakings that professionals make to one another to establish liability."
According to the published article of Vancouver Sun, Brent Clark from Miller Thomson firm explained that the trial decision made mortgage funders to reassess their processes to avoid "loss" when this certain situation occurs again.
Lin's lawyer defended that the decision made was based on whom the funds stolen from, WN indicated. But many practicing real estate lawyers including Karen Carteri of McMillan LLP firm insist that the case was a property case and transactions should be considered in making the trial decision.
CIBC appealed with the dispute of a case under a property law and not agency law where the decision is based from, Press Reader reported. Clark warns the Society of Notaries Public as the case may tarnish the notary offices in the future. But the Notaries stated that the Lin-Tang vs. CIBC is not uncommon.
Society has shelled out $8.6 million for the Lin-Tang vs. CIBC case.
