Freeborn et al. v. Goodman

Freeborn et al. v. Goodman

Majority held appellants acquired an equitable title to the exclusive right of occupancy and quiet possession which vested prior to and carved out of Benvenuto’s interest before the second mortgage was given; the second mortgagee (and its assignee) had notice and could not defeat those equitable interests; under the contract and conduct the vendor did not preserve a vendor’s lien that would defeat the purchasers’ equities, so the assignee of the second mortgage could not obtain possession of the suites—appeal allowed and trial judgment restored.

Citation
[1969] SCR 923
Parties
Defendants/appellants: Freeborn et al.; Plaintiff/respondent: Henry G. Goodman
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
16 June 1969
Procedural Posture
Appeal to Supreme Court of Canada / On Appeal From Court of Appeal for Ontario; Final Judgment on Appeal
Outcome
Appeal allowed; judgment of trial court restored; judgment of Court of Appeal set aside.
Legal Topics
Priority of Interests, Proprietary Lease, Vendor's Lien, Equitable Estoppel, Co Operative Housing
Source Language
English
Property Law Equity Mortgages Priority of Interests Proprietary Lease Vendor's Lien Equitable Estoppel Co Operative Housing

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 5 Authorities cited 13 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Freeborn et al.

Defendants/appellants

Henry G. Goodman

Plaintiff/respondent

Procedural Posture

Appeal to Supreme Court of Canada / On Appeal From Court of Appeal for Ontario; Final Judgment on Appeal

Legal Issues

  1. 1 Whether proprietary lessees acquired an equitable interest in exclusive right of occupancy that takes priority over assignee of a second mortgage
  2. 2 Whether an unpaid vendor’s equitable lien (or vendor’s charge) took priority over purchasers’ interests
  3. 3 Whether equitable estoppel or notice prevented the mortgage assignee from asserting priority

Ratio Decidendi

Majority held appellants acquired an equitable title to the exclusive right of occupancy and quiet possession which vested prior to and carved out of Benvenuto’s interest before the second mortgage was given; the second mortgagee (and its assignee) had notice and could not defeat those equitable interests; under the contract and conduct the vendor did not preserve a vendor’s lien that would defeat the purchasers’ equities, so the assignee of the second mortgage could not obtain possession of the suites—appeal allowed and trial judgment restored.

Court Disposition

Appeal allowed; judgment of trial court restored; judgment of Court of Appeal set aside.

Orders

  • Respondent’s foreclosure judgment does not authorise disturbance of appellants’ quiet possession of suites acquired pursuant to agreement and agreement-and-lease
  • Appeal allowed and trial judgment restored