Equity Enforces Promises That the Law Does Not: SCC
The Supreme Court clarifies the law on proprietary estoppel in Cowper-Smith v. Morgan,
2017 SCC 61, a BC case involving a dispute between three siblings over
their mother’s estate. Although the mother’s will provided that the
estate would be divided equally among the siblings (in keeping with the
plan made with her since deceased husband), her actions after her
husband died (transferring everything into joint ownership with her
daughter and executing a trust declaration in the daughter’s favour)
depleted the estate of assets to divide. After the mother’s death the
daughter decided to sell the house, ignoring a promise made to the
brother who had agreed to move in with and care for the mother
on the understanding that he would be able to live in the home
permanently and eventually acquire his sister’s one third
interest. Both brothers sued and were successful in setting aside
the trust declaration on the basis of undue influence. The matter ended
up in the Supreme Court, however, as a result of the Court of Appeal
finding that proprietary estoppel did not apply since the daughter had
no interest in the property when she made the assurances to her
brother. The Supreme Court disagreed, finding that the Court of
Appeal’s “proposed bright line rule — namely, that reliance on a
promise by a party with no present interest in property can never be
reasonable — is out of step with equity’s purpose, which is to temper
the harsh effects of strict legal rules” (para. 29) and that “ownership
at the time the representation or assurance was relied on is not a
requirement of a proprietary estoppel claim.” These articles discuss
the implications of the decision for estates and land disputes as well
as for commercial litigation:
Cowper-Smith and the Law of Proprietary Estoppel: Implications for the Oil and Gas Lease? - ABlawg
Equity Rules the Day: The Supreme Court of Canada Clarifies the Tenets of Proprietary Estoppel – WeirFoulds LLP
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Courts Play a Critical Role in Safeguarding Treaty Rights: SCC
In First Nation of Nacho Nyak Dun v. Yukon,
2017 SCC 58, a land use planning decision involving treaty lands, the
Supreme Court provides guidance on the law applying to treaty
interpretation and the role of courts in resolving disputes concerning
treaty implementation. The court set aside Yukon’s final plan for
development of a largely untouched wilderness area with an intact
ecosystem supporting the traditional activities of the First Nations,
finding that Yukon’s conduct in breaching the planning process by
making extensive changes to the Final Recommended Plan was “not
becoming of the honour of the Crown.” The court discusses the
appropriate judicial role in resolving this type of dispute at paras.
32 to 34 of the decision, concluding that “under s. 35 of the Constitution Act,
1982, modern treaties are constitutional documents, and courts play a
critical role in safeguarding the rights they enshrine. Therefore,
judicial forbearance should not come at the expense of adequate
scrutiny of Crown conduct to ensure constitutional compliance.” These
articles discuss the decision:
Supreme Court of Canada Sets Aside Regional Land Use Plan in Yukon – MLT Aikins
Judicial Intervention In Modern Treaty Processes Should Promote Negotiation And Reconciliation – Torys LLP
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Land Titles and Personal Property Registry Changes: Notices and Directives
Recommended Reading
Guidelines Put New Burden on Home Buyers
– this MLT Aikins post discusses the new guideline for residential
mortgage underwriting, which came into effect January 1, 2018.
Kindness and Mercy
– this Slaw post cites an Ontario Court of Appeal decision which the
author says is “an example of a court both showing mercy and exercising
the power it had with respect to a mortgagor’s equity of redemption
with kindness.”
Electronic Wills Down Under and Closer to Home
– this Slaw post canvasses some recent developments in the law
affecting electronic wills (in Australia, New Zealand and England) and
reviews the Canadian position on e-wills.
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STEP Programs
Upcoming educational sessions offered by the Winnipeg branch
of the Society of Trust and Estate Practitioners (STEP) include:
Taxation at Death and Post Mortem Planning (a full-day course on
February 1, 2018); Estate Litigation (March 20, 2018); and Health Care
Directives/Assisted Dying (May 15, 2018). To register, or for
information on how to become a member of STEP, check their website.
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ISSN 1916-3916
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