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“I accept Sadler’s evidence that he pointed out to the plaintiff at the outset of their relationship, or close to it, that the plaintiff was free to obtain his own appraisal of the properties he was obtaining mortgage security over,” Weatherill said in a ruling released this week. “I find that the plaintiff likely ignored that advice because of the cost, and because the transactions he engaged in with Sadler had all gone smoothly.”

Weatherill laid out the history between Sadler and Bryce, which began after the former businessman and longshoreman retired in 2008 and was looking for investments. Sadler told Weatherill that a broker “finds borrowers in need of mortgage loans and presents mortgage opportunities to lenders.” Sometimes he acted for the borrower, sometimes for the lender.

“Most of his deals involved higher-risk, second- and third-mortgage transactions.”

Sadler also told Weatherill that “it was his standard practice to advise and recommend to all lenders that he acts for to obtain their own appraisal of the property that is to be used as security for the loan.”

Photo by NICK PROCAYLO / PNG

Bryce and Sadler completed several other deals before the ill-fated Chilliwack investment arose in 2010.

“All of the investments made by the plaintiff were successful, with the full investment repaid to him together with interest. The maximum investment made by the plaintiff during this period was $350,000,” Weatherill noted.

Sadler raised the prospect of Bryce financing the $500,000 second mortgage on the Chilliwack acreage in May 2010. He gave Bryce a copy of a 2008 appraisal done for the owners’ broker, which valued the property at $2.1 million. The appraisal contained disclaimer clauses, Weatherill said, which Bryce admitted in court that he didn’t read.