Simon's Legal Resources

Statutory Interpretation - "Secure"

. 2069586 Ontario Inc. v. Sovereign General Insurance Company

In 2069586 Ontario Inc. v. Sovereign General Insurance Company (Ont CA, 2026) the Ontario Court of Appeal allowed a plaintiff's appeal, this brought against the dismissal of a summary judgment action against the professional liability insurer of a mortgage broker - and grounded in misappropriation of trust funds.

Here the court considers the contractual interpretation meaning of 'secure':

[90] The endorsement applies because Aztec failed to “secure” the mortgage funds it held in trust. In ordinary speech, to secure means to “keep safe from danger, harm, or loss”: Oxford English Dictionary (online), “secure”. That ordinary meaning governs: Emond, at para. 38. It is satisfied here. Aztec failed to keep the mortgage funds safe from loss. Instead, it dissipated them. Thus, the loss is covered.

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[94] The word “secure” is important. Its ordinary meaning includes to “succeed in obtaining” in addition to its protective sense described earlier: Oxford English Dictionary (online), “secure”. It necessarily encompasses the brokerage function of arranging mortgage financing in the first place. The term “advance” provides complementary protection by covering the next stage – the rollout of mortgage financing already obtained.