North-West Theatre Co. v. MacKinnon

North-West Theatre Co. v. MacKinnon

Majority held that under the Alberta Assignments Act the lease vested in the official assignee upon assignment and that the assignee's entry into possession manifested acceptance of the lease; because there is no statutory disclaimer provision he remained in privity of estate and was liable for all rent accruing for the remainder of the term.

Citation
(1916) 52 SCR 588
Parties
Plaintiff/appellant (lessor): North-West Theatre Company; Defendant/respondent (official Assignee): James A. MacKinnon
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
1 February 1916
Procedural Posture
Appeal / Appeal to the Supreme Court of Canada From the Appellate Division of the Supreme Court of Alberta
Outcome
Appeal allowed with costs; judgment of the trial judge restored in favour of the appellants.
Legal Topics
Assignment for Benefit of Creditors, Official Assignee Liability, Privity of Estate, Disclaimer of Lease, Vesting of Leasehold Under Statute
Source Language
English
Property Law Insolvency Law Statutory Interpretation Landlord and Tenant Law Assignment for Benefit of Creditors Official Assignee Liability Privity of Estate Disclaimer of Lease +1 more

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Parties

North-West Theatre Company

Plaintiff/appellant (lessor)

James A. MacKinnon

Defendant/respondent (official Assignee)

Procedural Posture

Appeal / Appeal to the Supreme Court of Canada From the Appellate Division of the Supreme Court of Alberta

Legal Issues

  1. 1 Whether an assignment under the Alberta Assignments Act vested the leasehold in the official assignee
  2. 2 Whether the assignee by entering possession accepted the lease and became personally liable for rent for the remainder of the term
  3. 3 Whether the Alberta statute permits the assignee to disclaim or reject leaseholds vested by operation of the Act

Ratio Decidendi

Majority held that under the Alberta Assignments Act the lease vested in the official assignee upon assignment and that the assignee's entry into possession manifested acceptance of the lease; because there is no statutory disclaimer provision he remained in privity of estate and was liable for all rent accruing for the remainder of the term.

Court Disposition

Appeal allowed with costs; judgment of the trial judge restored in favour of the appellants.

Orders

  • Appeal allowed with costs to the appellants
  • Judgment of the trial judge restored (reversing the Appellate Division)