McCauley v. McVey et al.

McCauley v. McVey et al.

Majority held that McVey bore the obligation to obtain the survey and secure title and could not rely on his own default; time being of the essence gave the innocent purchaser the option to terminate but the purchaser elected to keep the contract alive and was entitled to specific performance once title could be delivered.

Citation
[1980] 1 SCR 165
Parties
Appellant Purchaser: Charles W. McCauley; Respondent Vendor: James G. McVey; Respondent Real Estate Agent: G.L. Hudson; Respondent Solicitor: Ronald Martin MacFarlane
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
28 June 1979
Procedural Posture
Real Property Specific Performance / Appeal to Supreme Court of Canada From Court of Appeal for Ontario
Outcome
Appeal allowed against respondent McVey; specific performance ordered; appeal dismissed as against respondent MacFarlane.
Legal Topics
Specific Performance, Time of the Essence, Condition Precedent, Vendor's Obligation to Convey Title, Survey Obligations, Solicitor Conflict of Interest
Source Language
English
Property Law Contract Law Equity Specific Performance Time of the Essence Condition Precedent Vendor's Obligation to Convey Title Survey Obligations +1 more

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Parties

Charles W. McCauley

Appellant Purchaser

James G. McVey

Respondent Vendor

G.L. Hudson

Respondent Real Estate Agent

Ronald Martin MacFarlane

Respondent Solicitor

Procedural Posture

Real Property Specific Performance / Appeal to Supreme Court of Canada From Court of Appeal for Ontario

Legal Issues

  1. 1 Whether vendor's failure to procure survey and title by closing date barred specific performance
  2. 2 Whether a stipulation that time is of the essence creates a true condition precedent terminative of the contract
  3. 3 Whether a vendor can rely on his own default to avoid performance

Ratio Decidendi

Majority held that McVey bore the obligation to obtain the survey and secure title and could not rely on his own default; time being of the essence gave the innocent purchaser the option to terminate but the purchaser elected to keep the contract alive and was entitled to specific performance once title could be delivered.

Court Disposition

Appeal allowed against respondent McVey; specific performance ordered; appeal dismissed as against respondent MacFarlane.

Orders

  • Specific performance ordered against respondent McVey
  • Costs awarded against McVey throughout