Howard v. Stewart

Howard v. Stewart

Appeal allowed: for locations issued before 1 July 1909 a locatee held an assignable proprietary interest; a valid sale of that interest vests in the purchaser the right which becomes absolute on the issue of letters patent, and such perfected title cannot be defeated by a subsequent purchaser who takes with notice; registration rules govern priority and transfers of unregistered titles only operate in accordance with Civil Code arts. 2084–2098 and the public lands registration scheme.

Citation
(1914) 50 SCR 311
Parties
Appellant / Plaintiff: Benjamin C. Howard; Respondent / Defendant: James D. Stewart
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
13 October 1914
Procedural Posture
Appeal (civil, Property) / On Appeal to the Supreme Court of Canada From the Court of King’s Bench, Province of Quebec; Judgment Below Reversed
Outcome
Appeal allowed; judgment of the Court of King’s Bench (Q.R. 23 K.B. 80) reversed; appellant declared owner
Legal Topics
Crown Lands, Colonization, Location Ticket, Assignment of Rights, Letters Patent, Registration and Priority, Capacity of Corporate Transferees, Good‑faith Purchaser
Source Language
English

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Parties

Benjamin C. Howard

Appellant / Plaintiff

James D. Stewart

Respondent / Defendant

Procedural Posture

Appeal (civil, Property) / On Appeal to the Supreme Court of Canada From the Court of King’s Bench, Province of Quebec; Judgment Below Reversed

  1. 1 Whether a holder of a colonization location ticket (pre‑1 July 1909) had an assignable proprietary interest capable of sale
  2. 2 Whether a sale/assignment of a location ticket to a commercial company that could not perform settler duties was void as against third parties or public policy
  3. 3 Whether purchaser under an assignment obtains absolute title on issue of letters patent and can defeat a later purchaser with notice

Ratio Decidendi

Appeal allowed: for locations issued before 1 July 1909 a locatee held an assignable proprietary interest; a valid sale of that interest vests in the purchaser the right which becomes absolute on the issue of letters patent, and such perfected title cannot be defeated by a subsequent purchaser who takes with notice; registration rules govern priority and transfers of unregistered titles only operate in accordance with Civil Code arts. 2084–2098 and the public lands registration scheme.

Court Disposition

Appeal allowed; judgment of the Court of King’s Bench (Q.R. 23 K.B. 80) reversed; appellant declared owner

Orders

  • Appeal allowed and judgment below reversed
  • Plaintiff (Howard) declared proprietor of lot 35, range 1, Township of Arago, and of the seized timber