National Mortgage Co. v. Rolston

National Mortgage Co. v. Rolston

Mechanics' liens, properly registered before the appellant had an enforceable registered interest, had priority; the appellant's applications to register were cancelled and therefore not 'pending' so its unregistered interest did not bind lien-holders; appellant was not a mortgagee for priority purposes because advances were not made before work commenced; consequently appellant had no enforceable estate or interest to defeat the lien-holders or the purchaser and the appeal must be dismissed.

Citation
(1917) 59 SCR 219
Parties
Appellant (plaintiff): National Mortgage Co.; Respondent (defendant): Henry S. Rolston
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
1 May 1917
Procedural Posture
Civil Appeal to Supreme Court of Canada / On Appeal From the Court of Appeal for British Columbia; Final Judgment
Outcome
Appeal dismissed with costs; judgment of the Court of Appeal for British Columbia affirmed.
Legal Topics
Priority of Liens, Registration and Indefeasible Title, Effect of Cancelled Registration Application, Status of Mortgagee Vs Purchaser, Procedural Standing in Lien Actions
Source Language
English
Property Law Land Registration Mechanics' Liens Priorities and Hypothecs Equity and Trusts Priority of Liens Registration and Indefeasible Title Effect of Cancelled Registration Application +2 more

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Parties

National Mortgage Co.

Appellant (plaintiff)

Henry S. Rolston

Respondent (defendant)

Procedural Posture

Civil Appeal to Supreme Court of Canada / On Appeal From the Court of Appeal for British Columbia; Final Judgment

Legal Issues

  1. 1 Whether mechanics' liens registered against the land take priority over the appellant's unregistered/unenforced interest
  2. 2 Whether cancellation of an application under s.108 of the Land Registry Act renders the application void ab initio for purposes of determining if an application was 'pending'
  3. 3 Whether the appellant had the status of a mortgagee entitled to claim priority under s.9 of the Mechanics' Lien Act

Ratio Decidendi

Mechanics' liens, properly registered before the appellant had an enforceable registered interest, had priority; the appellant's applications to register were cancelled and therefore not 'pending' so its unregistered interest did not bind lien-holders; appellant was not a mortgagee for priority purposes because advances were not made before work commenced; consequently appellant had no enforceable estate or interest to defeat the lien-holders or the purchaser and the appeal must be dismissed.

Court Disposition

Appeal dismissed with costs; judgment of the Court of Appeal for British Columbia affirmed.

Orders

  • Appeal dismissed with costs
  • Judgment of the Court of Appeal for British Columbia affirmed