Union Bank of Canada v. Phillips and Boulter Waugh Ltd.

Union Bank of Canada v. Phillips and Boulter Waugh Ltd.

Section 194 (s.162 R.S. Sask.) of the Land Titles Act makes the register decisive and, except in cases of actual fraud, a person dealing with registered land is not affected by notice of unregistered interests; therefore where a caveat lapses under the statutory procedure the assignee cannot invoke the mortgagee's prior knowledge to defeat the mortgagee's registered priority absent fraud.

Citation
(1919) 58 SCR 385
Parties
Appellant/defendant: Union Bank of Canada; Defendant: Frank C. Phillips; Respondent/plaintiff: Boulter Waugh Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
17 March 1919
Procedural Posture
Appeal; Land Title and Priority Dispute (mortgage Vs Unregistered Equitable Interest) / On Appeal to the Supreme Court of Canada From the Court of Appeal for Saskatchewan
Outcome
Appeal allowed; judgment of the Court of Appeal for Saskatchewan reversed; judgment of the trial judge restored.
Legal Topics
Caveat, Registration, Priority of Interests, Fraud, Land Titles Act S.194 (sask)
Source Language
English
Property Land Titles Equity Mortgage Statutory Interpretation Caveat Registration Priority of Interests +2 more

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Parties

Union Bank of Canada

Appellant/defendant

Frank C. Phillips

Defendant

Boulter Waugh Limited

Respondent/plaintiff

Procedural Posture

Appeal; Land Title and Priority Dispute (mortgage Vs Unregistered Equitable Interest) / On Appeal to the Supreme Court of Canada From the Court of Appeal for Saskatchewan

Legal Issues

  1. 1 Whether s.194 (s.162 R.S. Sask.) of the Land Titles Act prevents an assignee with an unregistered equitable interest from asserting priority against a registered mortgagee who had actual knowledge of that interest
  2. 2 Whether the lapse/vacation of a caveat under the statutory procedure extinguishes the protection of the unregistered interest against subsequent registered dealings absent fraud
  3. 3 Whether mere knowledge of an unregistered interest by a purchaser or mortgagee can be imputed as fraud under the statute

Ratio Decidendi

Section 194 (s.162 R.S. Sask.) of the Land Titles Act makes the register decisive and, except in cases of actual fraud, a person dealing with registered land is not affected by notice of unregistered interests; therefore where a caveat lapses under the statutory procedure the assignee cannot invoke the mortgagee's prior knowledge to defeat the mortgagee's registered priority absent fraud.

Court Disposition

Appeal allowed; judgment of the Court of Appeal for Saskatchewan reversed; judgment of the trial judge restored.

Orders

  • Appeal allowed
  • Judgment of the Court of Appeal for Saskatchewan reversed