City of Montreal v. Ferguson

Parties

Procedural Posture

Property / Real Estate Dispute (sheriff's Sale, Expropriation, Municipal Possession) / Appeal to the Supreme Court of Canada From the Court of King's Bench (quebec), on Appeal From Superior Court

Legal Issues

1. 1 Whether a sheriff's sale can be set aside as super non domino when a municipality is in de facto possession
2. 2 Whether municipal acts or possession constituted a valid dedication/expropriation of private land without formal expropriation procedures
3. 3 Whether an owner subject to a hypothec could validly dedicate or abandon land to the public, defeating hypothecary rights

Ratio Decidendi

The sheriff's judicial sale effected under the hypothecary judgment was regular and transferred title to the purchaser because the registered owner Robert was not in legal possession animo domini of the lisiere at the time of seizure and did not oppose the sale; the City of Montreal never acquired lawful title because it failed to complete acceptance, expropriation or any valid dedication or sale and thus was a mere trespasser, so the Court upheld Ferguson's title and ordered restitution of possession subject to a one month extension to permit the city to negotiate or expropriate lawfully.

Court Disposition

Appeal dismissed; judgment of the Court of King's Bench (which maintained respondent's action) affirmed with modification

Orders

• Judgment of the Court of King's Bench affirmed and respondent declared sole owner of the disputed lisiere and entitled to possession
• City of Montreal ordered to deliver possession of the disputed lisiere to Malcolm M. Ferguson within one month to permit the city to arrange a settlement or commence lawful expropriation; otherwise to vacate and restore possession