A.V.G. Management Science Ltd. v. Barwell Developments Ltd. et al.

A.V.G. Management Science Ltd. v. Barwell Developments Ltd. et al.

The rule in Bain v. Fothergill did not apply where the vendors, who had title, effectively agreed to sell to two purchasers and thereby voluntarily disabled or risked their capacity to convey; accordingly purchaser entitled to ordinary contract damages (loss of bargain). The Court further held that the rationale for Bain is inapposite in jurisdictions with Torrens or robust public registry systems and should not be followed there if necessary to decide a case.

Citation
[1979] 2 SCR 43
Parties
Appellant: A.V.G. Management Science Ltd.; Respondent: Barwell Developments Ltd.; Respondent: Cambie Construction Ltd.; Respondent: Canada Permanent Trust Company; Respondent: Raymond Outtrim
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
21 December 1978
Procedural Posture
Appeal (sale of Land / Contract for Sale) / Appeal to the Supreme Court of Canada From the Court of Appeal for British Columbia; Judgment Delivered December 21, 1978
Outcome
Appeal allowed; judgments below set aside; judgment entered for appellant.
Legal Topics
Inability to Give Title, Damages for Breach of Contract for Sale of Land, Rule in Bain V. Fothergill, Specific Performance, Land Registration/torrens System, Caveat/lis Pendens
Source Language
English
Real Property Contract Law Equity Civil Procedure Inability to Give Title Damages for Breach of Contract for Sale of Land Rule in Bain V. Fothergill Specific Performance +2 more

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Parties

A.V.G. Management Science Ltd.

Appellant

Barwell Developments Ltd.

Respondent

Cambie Construction Ltd.

Respondent

Canada Permanent Trust Company

Respondent

Raymond Outtrim

Respondent

Procedural Posture

Appeal (sale of Land / Contract for Sale) / Appeal to the Supreme Court of Canada From the Court of Appeal for British Columbia; Judgment Delivered December 21, 1978

Legal Issues

  1. 1 Whether the rule in Bain v. Fothergill applied to limit purchaser’s damages
  2. 2 Whether a vendor who effectively agrees to sell the same property twice (having had title) falls within Bain v. Fothergill or is disentitled from invoking it
  3. 3 Whether the Bain v. Fothergill rule should continue to apply in Canadian jurisdictions with Torrens or public registry systems

Ratio Decidendi

The rule in Bain v. Fothergill did not apply where the vendors, who had title, effectively agreed to sell to two purchasers and thereby voluntarily disabled or risked their capacity to convey; accordingly purchaser entitled to ordinary contract damages (loss of bargain). The Court further held that the rationale for Bain is inapposite in jurisdictions with Torrens or robust public registry systems and should not be followed there if necessary to decide a case.

Court Disposition

Appeal allowed; judgments below set aside; judgment entered for appellant.

Orders

  • Judgment entered for the purchaser (appellant) for $37,000 (loss of bargain) plus $6,628.50 (deposit, title investigation costs, solicitor’s fees and disbursements) totalling $43,628.50.
  • Costs awarded to the appellant throughout.