Pong v. Quong

Pong v. Quong

Pong held the subsequent lease on trust for the plaintiffs because obtaining that lease breached his duty of good faith and an implied obligation respecting renewals arising from the prior assignment; the assignment’s reference to renewals must be read as protecting the reasonable expectation of tenants in possession, and the prior overholding tenants judgment did not bar this action because the county court judge lacked jurisdiction to determine the inter-party rights and any such determination was coram non judice.

Citation
[1927] SCR 271
Parties
Appellant/defendant: Jack Pong; Respondents/plaintiffs: Lum Quong and Lum Chong; Respondent/landlord: Mrs. W.J. Thomson
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
24 February 1927
Procedural Posture
Appeal to Supreme Court of Canada (trust/landlord and Tenant) / On Appeal From Appellate Division of the Supreme Court of Ontario
Outcome
Appeal dismissed; judgment of the Appellate Division affirmed that Pong holds the lease as trustee for the plaintiffs and must assign it to them.
Legal Topics
Implied Trust, Renewal of Lease, Overholding Tenants Proceedings, Res Judicata, Jurisdiction of County Court Judge, Breach of Good Faith
Source Language
English
Trust Landlord and Tenant Equity Civil Procedure Implied Trust Renewal of Lease Overholding Tenants Proceedings Res Judicata +2 more

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Parties

Jack Pong

Appellant/defendant

Lum Quong and Lum Chong

Respondents/plaintiffs

Mrs. W.J. Thomson

Respondent/landlord

Procedural Posture

Appeal to Supreme Court of Canada (trust/landlord and Tenant) / On Appeal From Appellate Division of the Supreme Court of Ontario

Legal Issues

  1. 1 Whether Pong holds the subsequent lease as trustee for the plaintiffs
  2. 2 Whether the assignment’s reference to renewal imposes an implied obligation to procure renewals for tenants in possession
  3. 3 Whether plaintiffs are estopped by res judicata due to prior overholding tenants proceedings

Ratio Decidendi

Pong held the subsequent lease on trust for the plaintiffs because obtaining that lease breached his duty of good faith and an implied obligation respecting renewals arising from the prior assignment; the assignment’s reference to renewals must be read as protecting the reasonable expectation of tenants in possession, and the prior overholding tenants judgment did not bar this action because the county court judge lacked jurisdiction to determine the inter-party rights and any such determination was coram non judice.

Court Disposition

Appeal dismissed; judgment of the Appellate Division affirmed that Pong holds the lease as trustee for the plaintiffs and must assign it to them.

Orders

  • Appeal dismissed with costs
  • Declaration that defendant Jack Pong holds the lease on trust for the plaintiffs Lum Quong and Lum Chong