Pierce v. Empey

Pierce v. Empey

The written deed and solicitors' letter established that the mortgagee took the land in fee simple free from the equity of redemption while granting the mortgagor a three-month option to repurchase; the appellant failed to adduce the convincing parol evidence required to convert the deed into security and failed to pay or tender the option price or otherwise show equitable grounds excusing strict performance, so redemption was not available and the appeal must fail.

Citation
[1939] SCR 247
Parties
Appellant (plaintiff): Henry Pierce; Respondent (defendant): Clara Empey
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
19 January 1939
Procedural Posture
Mortgage Redemption Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario
Outcome
Appeal dismissed with costs
Legal Topics
Option to Purchase, Equity of Redemption, Quit Claim Deed, Statute of Frauds and Parol Evidence, Enforcement of Option, Foreclosure and Possession
Source Language
English
Contract Property Mortgage Equity Option to Purchase Equity of Redemption Quit Claim Deed Statute of Frauds and Parol Evidence +2 more

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Parties

Henry Pierce

Appellant (plaintiff)

Clara Empey

Respondent (defendant)

Procedural Posture

Mortgage Redemption Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario

Legal Issues

  1. 1 Whether the January 8, 1934 quit claim deed operated as an absolute conveyance or was a security preserving the equity of redemption
  2. 2 Whether the mortgagor retained a right to redeem or only an option to repurchase and, if an option, whether its conditions were satisfied or excused
  3. 3 Whether parol evidence could overcome the written documents and the onus required to prove that the deed was security only

Ratio Decidendi

The written deed and solicitors' letter established that the mortgagee took the land in fee simple free from the equity of redemption while granting the mortgagor a three-month option to repurchase; the appellant failed to adduce the convincing parol evidence required to convert the deed into security and failed to pay or tender the option price or otherwise show equitable grounds excusing strict performance, so redemption was not available and the appeal must fail.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs.