Cypress Development Corporation v. Mid-North Resources Limited

Cypress Development Corporation v. Mid-North Resources Limited

The Master's order for forfeiture was set aside because it was founded on an unpleaded oral agreement alleged for the first time in affidavit material; the written Option Agreement did not provide for forfeiture between the plaintiff and defendant where there was no default to the Optionor, and it was procedurally...

Source-derived case information.

Citation
2001 BCSC 993
Parties
Plaintiff (respondent): Cypress Development Corporation; Defendant (appellant): Mid-North Resources Limited
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
12 July 2001
Procedural Posture
Appeal From Master's Order in Civil Contract/property Dispute / Rehearing on Appeal (non‑interlocutory Order)
Outcome
Appeal allowed; Master's declaration of forfeiture set aside.
Legal Topics
Forfeiture, Default, Oral Agreement, Pleadings and Amendment, Service and Notice, Summary Judgment/default Judgment
Source Language
english
Contract Law Property Law Mining Law Civil Procedure Forfeiture Default Oral Agreement Pleadings and Amendment +2 more

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Parties

Cypress Development Corporation

Plaintiff (respondent)

Mid-North Resources Limited

Defendant (appellant)

Procedural Posture

Appeal From Master's Order in Civil Contract/property Dispute / Rehearing on Appeal (non‑interlocutory Order)

Legal Issues

  1. 1 Whether the Master could properly declare forfeiture of defendant's interest absent a pleaded cause of action supporting forfeiture between the optionees
  2. 2 Whether paragraph 2.04 of the written Option Agreement created a right of forfeiture between the plaintiff and defendant where there was no default to the Optionor
  3. 3 Whether judgment was improperly granted on an unpleaded oral agreement alleged for the first time in affidavit material

Ratio Decidendi

The Master's order for forfeiture was set aside because it was founded on an unpleaded oral agreement alleged for the first time in affidavit material; the written Option Agreement did not provide for forfeiture between the plaintiff and defendant where there was no default to the Optionor, and it was procedurally improper to grant judgment on a new cause of action without notice or amendment of pleadings.

Court Disposition

Appeal allowed; Master's declaration of forfeiture set aside.

Orders

  • Order of the Master dated May 2, 2001 declaring forfeiture set aside
  • Plaintiff at liberty to bring further applications consistent with existing pleadings