McKillop & Benjafield v. Alexander

McKillop & Benjafield v. Alexander

Majority held that Alexander’s prior equitable interest was preserved by his timely lodging of a caveat under the Land Titles Act; the caveat prevented the acquisition or bettering of any legal or equitable interest adverse to his claim by subsequent purchasers who acquired interests after the caveat was registered; consequently the appellants’ later assignment and eventual vendor approval were subject to Alexander’s prior equity and the appeal was dismissed.

Citation
(1912) 45 SCR 551
Parties
Appellants / Defendants: McKillop & Benjafield; Respondent / Plaintiff: Charles I. Alexander; Registered Owner / Vendor: Canadian Northern Railway Company; Vendor's Agent / Manager of Lands: Canadian Northern Prairie Lands Company; Assignor / Intermediate Vendor: G. A. Gessman; Original Purchaser (assigned to Gessman): Potter
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
20 February 1912
Procedural Posture
Appeal to Supreme Court of Canada; Action for Specific Performance / On Appeal From Supreme Court of Saskatchewan; Judgment Delivered by Supreme Court of Canada
Outcome
Appeal dismissed; judgment of the Supreme Court of Saskatchewan affirmed by majority (Duff J. dissenting)
Legal Topics
Caveat, Registration Priority, Assignment of Contract, Specific Performance, Notice, Construction of Statute, Vendor Approval Clause
Source Language
English
Property Law Equity Conveyancing Contract Law Torrens System Caveat Registration Priority Assignment of Contract +4 more

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Parties

McKillop & Benjafield

Appellants / Defendants

Charles I. Alexander

Respondent / Plaintiff

Canadian Northern Railway Company

Registered Owner / Vendor

Canadian Northern Prairie Lands Company

Vendor's Agent / Manager of Lands

G. A. Gessman

Assignor / Intermediate Vendor

Potter

Original Purchaser (assigned to Gessman)

Procedural Posture

Appeal to Supreme Court of Canada; Action for Specific Performance / On Appeal From Supreme Court of Saskatchewan; Judgment Delivered by Supreme Court of Canada

Legal Issues

  1. 1 Whether lodging a caveat under the Saskatchewan Land Titles Act preserves a prior equitable interest and prevents subsequent acquisition of legal or equitable interest adverse to the caveator
  2. 2 Priority rules between competing equitable purchasers where one registers a caveat under Torrens legislation
  3. 3 Effect and enforceability of a vendor’s contractual clause requiring approval of any assignment

Ratio Decidendi

Majority held that Alexander’s prior equitable interest was preserved by his timely lodging of a caveat under the Land Titles Act; the caveat prevented the acquisition or bettering of any legal or equitable interest adverse to his claim by subsequent purchasers who acquired interests after the caveat was registered; consequently the appellants’ later assignment and eventual vendor approval were subject to Alexander’s prior equity and the appeal was dismissed.

Court Disposition

Appeal dismissed; judgment of the Supreme Court of Saskatchewan affirmed by majority (Duff J. dissenting)

Orders

  • Appeal dismissed with costs
  • Judgment below maintained ordering specific performance in favour of the plaintiff (Charles I. Alexander) against defendants as appropriate, subject to the court's directions