PDF version: The Unusual Appointment of an Investigator under the Condominium Property Act

Case considered: Morris v Condominium Corporation No. 074 0215, 2012 ABQB 265

This April 23, 2012 decision by Master Lorne Smart appears to be the first to consider the appointment of an investigator under section 67(2) (a) of the Condominium Property Act, RSA 2000, c C-22. Section 67 allows a court to grant a variety of remedies if the court is satisfied that there has been “improper conduct” as defined in subsection 67(1) (a). Although many interested parties have used section 67 to seek injunctions, compensation and other remedies, the appointment of an investigator to review the improper conduct and report to the court is not a popular option. This decision is interesting for what it tells us about when it is appropriate to seek this particular remedy, when a court will exercise its discretion in favour of appointing an investigator, and what qualities make a particular person an appropriate investigator.

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Document considered: Wildrose Platform on Justice, Policing and Human Rights

PDF Version: Kangaroo-ism

My colleague, Jennifer Koshan, has written a serious ABlawg post on “The Alberta Election and Human Rights,” pointing out numerous problems with the Wildrose platform on Justice, Policing and Human Rights. The purpose of this post is much narrower and less serious, and that is to follow up on the “kangaroo courts” insult in the Wildrose policy statement.
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PDF version: Who Bears the Loss for Converted Security Deposits? 

Case considered: Equitable Trust Company v Lougheed Block Inc., 2012 ABCA 87

This judgment is one of several arising as a result of foreclosure proceedings taken with respect to the historic Lougheed Building at 604 - 1 Street S.W. in Calgary. In this March 2012 decision by the Court of Appeal the focus is on the security deposits that the former owner of the building had converted to its own use. Because neither the foreclosing mortgage company - Equitable Trust Company - nor the court-approved purchaser of the building - the aptly named 604 - 1 Street S.W. Inc. - received the tenants’ security deposits from the former owner/landlord, the issue was a classic in commercial law, a “battle of innocents.” Who would be out the more than $340,000 in security deposits, the mortgagee or the purchaser? The Chambers judge, R.G. Stevens, had let the loss lie where it fell, on the purchaser who would become the landlord to whom the tenants would look for their security deposits. A unanimous Court of Appeal - Madam Justice Marina Paperny, Mr. Justice J.D. Bruce McDonald and Mr. Justice Brian O’Ferrall - allowed the purchaser’s appeal and shifted the loss to the foreclosing mortgagee. While many of the grounds for allowing the appeal were based on the particular terms of the specific contract of purchase and sale between these individual parties, some of the grounds are more generalizable and therefore of broader interest.

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PDF version: The Proper Person to Renew an Assigned Lease

Case considered: C & H Properties Inc. v Amos (Discount Thrift Store), 2012 ABQB 106

Carelessness with respect to assignments and subleases can easily jeopardize commercial tenants’ rights to renew their leases. Many tenants assign or sublet their rented commercial premises without seeking their landlord’s consent, which is usually required by the terms of their lease. Many commercial tenants do not seem to know the difference between assignments and subleases. Neither do they appear to realize that when they assign their lease, they lose the right to renew the lease and only their assignee has that right, whereas if they sublet then they retain the right to renew the lease. Perhaps that is why commercial lease negotiation consulting appears to be a growing business in North America. However, despite some assistance from a consultant in this case, the tenant was never able to overcome a lack of attention to details in the lease or their confusion about the difference between an assignment and a sublease.

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Case considered: Allen v Gray, 2012 ABQB 66

PDF version: Refining Vexatious Litigant and Vexatious Spokesperson Jurisprudence

Alberta’s new vexatious litigant provisions have been in force for almost five years now and a useful body of precedent has been developed. Novel points continue to arise, but these tend to be minor ones. Nevertheless, Allen v Gray makes three useful legal points: (1) case law from before the 2007 amendments continues to be useful, in part because the term “vexatious” is undefined; (2) it is irrelevant whether the alleged vexatious litigant is prosecuting (or defending) his or her own action or acting as an agent for another person (the “vexatious spokesperson”); and (3) the new provisions are of no help in preventing vexatious administrative proceedings.

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PDF version: Waiver of Dispute Resolution under the New Rules

Case considered: IBM Canada Limited v Kossovan, 2011 ABQB 621.

In IBM Canada Limited v Kossovan, Mr. Justice Bryan E. Mahoney provided the first judicial interpretation of an important new provision in the Alberta Rules of Court, Alta Reg 124/2010 (New Rules). The provision in question - Rule 4.16(2) — governs applications to waive the dispute resolution processes mandated by Rule 4.02(e) of the New Rules. As Justice Mahoney notes (at para 4), “[w]hile the New Rules contemplate circumstances wherein the requirement might be waived, as yet, there is little guidance from our Court as to how this Rule is to be interpreted.” Using case law from other jurisdictions that have adopted similar mandatory dispute resolution procedures, this decision begins to provide that guidance. However, as much of that guidance is based on anecdotal evidence and intuitions about the effectiveness of dispute resolution, it is to be hoped that the mandatory dispute resolution provisions of the New Rules will be empirically evaluated for both costs and benefits in the near future.

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PDF version: Is this the end of an “endless repetition of failed litigation” – at least in Alberta? 

Case considered: Karaha Bodas Company, L.L.C. v Perusahaan Pertambangan Minyak Dan Gas Bumi Negara, 2011 ABCA 291

The Court of Appeal waxes eloquent in this short judgment that considers the latest episode in what the Court characterized (at para 8 ) as an “endless repetition of failed litigation.” The Court of Appeal - composed of Mr. Justice Jean Côté, Madam Justice Elizabeth McFadyen and Mr. Justice Clifton O’Brien - heard an appeal from an April 1, 2010 order by Mr. Justice T.D. Clackson (Karaha Bodas Company, L.L.C. v Perusahaan Pertambangan Minyak Dan Gas Bumi Negara, 2010 ABQB 172), an order that I commented on in “Arbitration for the Quick and Final Resolution of Disputes? Hardly.” The subject matter of that order is a procedural morass, the details of which are rather mind-numbing. What is interesting about the latest decision is the Court of Appeal’s characterization of Pertamina’s continuing world-wide litigation as “vexatious”. Will that characterization finally bring a halt to these proceedings, at least in this province?
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PDF version:  How persistent does a vexatious litigant have to be?

Case considered: Wong v Giannacopoulos, 2011 ABCA 206

Are the 2007 vexatious litigant provisions in the Judicature Act, RSA 2000, c J-2, being overused? Is it too easy to have a person declared a “vexatious litigant and barred from bringing or continuing court actions without leave of a court? I am sure that every person who has had a vexatious litigant order made against them would answer “yes” to both questions, but what might a more detached assessment reveal? These questions demand empirical answers that I cannot give. However, the recent decision of Justice Frans Slatter in Wong v Giannacopoulos suggests that vexatious litigant orders are only being granted in rather extreme cases. It seems to take a lot of improper behaviour against a variety of long-suffering defendants before a person is denied unmediated access to a court.

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PDF version: It’s Difficult to Disinherit Some Adult Children 

Case considered: Soule v. Johansen Estate, 2011 ABQB 403

Alberta Justice has spent the past few years reviewing provincial succession laws and proposing reforms to consolidate and update the relevant provincial statutes. The result of the Alberta Succession Law Reform project was the passage of the new Wills and Succession Act, SA 2010, c W12.2 by the Alberta legislature in the fall of 2010 (Bill 21). However, because the changes are extensive, the new Wills and Succession Act will not come into force until it is proclaimed and proclamation is not expected until early 2012. It is interesting to consider whether or not the result in Soule v. Johansen Estate would have been any different under new law. In her will, Elsie Carrolle Johansen left all of her $116,000 estate to the Calgary Humane Society. She chose to disinherit her only son, Kim Soule, a 51 year old man suffering from hepatitis C, because she did not want her estate to be spent on drugs and alcohol. He asked the court to re-write his mother’s will under the Dependants Relief Act, RSA 2000, c D-10.5, because he is unable to earn a livelihood. Although Mr. Soule did not appear to be a sympathetic supplicant, he nevertheless prevailed. Justice Sheilah Martin rewrote his mother’s will to give all but $10,000 of his mother’s estate to Mr. Soule. Her main reason for doing so appears to be the predominantly pragmatic one of relieving taxpayers of the burden of Mr. Soule’s support.

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PDF version: The Effect of Non-compliance with the Dower Act - Yet Again 

Case considered: Webb (Re), 2011 ABQB 89

The context of this dower case is somewhat unusual. The Registrar in Bankruptcy had directed a trial to determine whether a caveat registered by a Mr. Karafiat, which claimed a secured interest in a homestead, was invalid because it did not comply with the Dower Act. The parties’ concession that non-compliance with the requirements of the Dower Act, RSA 2000, c D-15 did not render the disposition of the homestead void is also somewhat unusual. This is the first case that I am aware of in which the parties conceded that non-compliance rendered the transaction voidable, and not void. It is true there has been a trend in Alberta towards finding that the effect of a disposition of a homestead without the consent of a spouse is to render the disposition voidable, and not void. However, the matter is not free from doubt because the Supreme Court of Canada’s last word on the issue held such a disposition was void ab initio.

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