eLaw - Property & Succession Update│ March 2016 - No. 79
 
 
                                         
                                     
                                     

 

The Law Society of Manitoba
Professional Education and Competence

 
 

     
 

       eLaw Property & Succession Update                                            March  2016

In This Issue
Role of Municipal Board in Inter-Municipal Disputes Merits Examination: MBCA
Court Denounces Misuse of Court Resources in Foreclosure Case: MBCA
Assessing the Reasonableness of Testamentary Expenses in a Bankrupt Estate: MBQB
Interlocutory Injunction Granted in Foreclosure Action: MBQB
Legislative Update
Property Registry Notices and Directives
Recommended Reading
Spring CPD: LSM
 MBA Programs
 Upcoming STEP Programs

 
     
 

Role of Municipal Board in Inter-Municipal Disputes Merits Examination: MBCA

In East St Paul (Rural Municipality) v Winnipeg (City), 2016 MBCA 16, the court granted the RM leave to appeal the Municipal Board’s decision that it was beyond its jurisdiction to make any remedial order in an inter-municipal dispute over shared infrastructure (an issue never before addressed by the court). The issue is important, said the court, because “it raises a possible limit to the powers of all municipal governments in Manitoba….” and “has implications for similar local government disputes falling under The Northern Affairs Act.” (para. 17)

 
 

Court Denounces Misuse of Court Resources in Foreclosure Case: MBCA

The court ordered solicitor client costs against a vexatious self-represented litigant who unsuccessfully appealed the dismissal of her application to have her residential mortgage declared invalid in Marshall v MCAP Service, 2016 MBCA 10. The court found that “the appellant’s unacceptable misuse of the legal system…. was entirely abusive, warranting full indemnification” of the mortgagee’s costs.

 
 

Assessing the Reasonableness of Testamentary Expenses in a Bankrupt Estate: MBQB

The Reference Order in The Estate of Gerald Edward Dickson, 2015 MBQB 183, examines the interesting issue of whether and to what extent a bankrupt estate is liable to pay legal fees as a testamentary expense under s. 136(1)(a) of the Bankruptcy and Insolvency Act. As noted by the court, certain unique aspects of the estate influenced its decision: specifically, the difficult family situation at play, in which the deceased’s estranged wife is a major creditor of the estate and his daughters the residuary beneficiaries; the fact that the executor imprudently made a conscious election to take on that role after the original executor, a trust company, renounced its appointment when due diligence revealed the estate was insolvent and the prudent course was to assign it into bankruptcy immediately; and the fact that counsel for the ex-wife and daughters dealt with the executor for several months before challenging the codicils allowing him to act as litigation administrator. After analysing ten separate accounts to determine what legal costs could reasonably be compensated as proper testamentary expenses, the court allowed a total fee of $26,176.48, excluding any calculation for the passing of accounts.

 
 

Interlocutory Injunction Granted in Foreclosure Action: MBQB

Burnett v. CIBC Mortgage Inc., 2016 MBQB 13, a defaulting mortgagor was granted an interlocutory injunction to prevent the completion of a mortgage auction sale pending trial to determine whether the mortgagee acted in bad faith to undermine the mortgagor’s efforts to redeem the property from foreclosure. The court found that certain actions of the mortgagee (e.g. not accounting for the demanded legal fees), if proven, could lead to a finding of bad faith and that damages would not adequately compensate the mortgagor for having to vacate his home and lose $120,000 in equity.

 
 

Legislative Update

The Planning Amendment Act (Special Planning Areas), S.M. 2015, c.26 has been proclaimed in force effective March 8, 2016. It replaces the provisions of The Planning Act dealing with special planning areas. As noted in the explanatory note to Bill 13, it establishes the Inland Port Special Planning Area for the portion of the inland port found within the Rural Municipality of Rosser, and enables other special planning areas to be established by regulation. It also provides that land use within a special planning area will be controlled by a development plan and a zoning by-law made by ministerial regulation.

The Land Surveyors and Related Amendments Act
has been proclaimed in force effective March 31, 2016. As noted in the explanatory note to Bill 29, the Act replaces the existing Land Surveyors Act to provide updated legislation for the governance of the land surveying profession. It includes provisions for the registration of members and professional corporations and creates processes for complaints and discipline.

 
 

Property Registry Notices and Directives

The Property Registry issued the following notices/directives in January and February:

Self Serve Password Resets – the Property Registry announced the release of a new self serve password reset process on February 26, 2016, allowing users with a unique email address on file with TPR to reset their own passwords online.

Approval of New Caveat and Mortgage Forms – new electronic fillable smart forms for caveats and mortgages were approved for use and made available for download on January 18, 2016 and will become mandatory in October 2017.

Certified Copies of Documents – this January 15, 2016 directive concerns the admissibility of electronic copies of registered documents available through TPR online services.

 
 

Recommended Reading

Condo industry’s brave new world – this Lawyers Weekly article discusses the new administrative authorities scheme under Ontario’s recently enacted condominium legislation (Bill 106 - Protecting Condominium Owners Act, 2015 and Condominium Management Services Act, 2015), which received royal assent on December 3, 2015 and is expected to be proclaimed by 2017.

 
 

Spring CPD: LSM

Annual Hot Topics in Real Estate – the focus of the 2016 version of this popular annual program is on risk and insurance considerations. The May 2 session is sold out, but there are still spots in the morning session on May 3, 2016. Register soon to ensure your spot. Students are eligible for a 50% discount.

Aboriginal Law Series – this series continues with upcoming programs on Urban Reserves as a Tool for Economic Development, on March 16, 2016, and a unique opportunity to explore Indigenous Legal Traditions at Turtle Lodge on Sagkeeng First Nation, on May 17, 2016.

Builders’ Liens 2 Part CPD – attend one or both parts of this two part program on builders’ liens, to be held in the Law Society classroom on the afternoon of April 27, 2016. The first half is a builders’ lien primer for those new to the area, and the second is an update on the law post-Stuart Olson. Student registrations are discounted 50%.

 
 

MBA Programs

Adjusting City of Winnipeg water consumption accounts and sewer service costs between vendors and purchasers – attend this evening session on March 10, 2016 to learn how best to protect real property clients with respect to unpaid water and sewer accounts. The meeting takes place from 5:00 to 6:30 pm in the Pitblado LLP boardroom.

Committeeships 101 – What you need to know – learn the tips and traps of obtaining a committeeship order and examine the ongoing obligations under such orders at this jointly sponsored program on March 23, 2016, from noon to 1:30 pm at the Law Society classroom.

City of Winnipeg 101 – learn the ABCs of advocating for clients before City of Winnipeg committees or tribunals at this Municipal Law section meeting on March 24, 2016. The meeting takes place from 5:00 to 6:30 pm at Aikins.

 
 

Upcoming STEP Programs

Upcoming programs offered by the Winnipeg section of the Society of Trust and Estate Practitioners include Challenges in Building Wealth for First Nations (March 15, 2016) and Cross-Border Issues (May 10, 2016). For further details or to register check the website.

 
 
 
 
ISSN 1916-3916
 
 
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
 
 
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