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Month: March 2013 Page 1 of 2

Summary judgement on an oil and gas lease termination case

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Decision commented on: P Burns Resources Limited v Locke, Stock and Barrel Company Limited, 2013 ABQB 129.

In this appeal from an unreported decision of Master Laycock, Justice Bensler granted partial summary judgement on an application for a declaration that a petroleum and natural gas lease had expired during its secondary term for want of production or working operations. The evidentiary basis for this conclusion consisted primarily of production records filed with the Energy Resources Conservation Board (or its predecessors). On the appeal before Justice Bensler in the Court of Queen’s Bench the lessee supplemented the record with evidence of one of its employees and one of its consultants.

A Farmee that Spuds in the Test Well has the Right to a Default Notice

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Case commented on: EOG Resources Canada v Unconventional Gas Resources Canada Operating Inc, 2013 ABQB 105 (MC)

This decision interprets the default clause (Article 13) of the Canadian Association of Petroleum Landmen’s (CAPL) Farmout and Royalty Procedure. It confirms that there is no automatic termination of the farmee’s right to earn provided that the farmee has spudded in the earning well; the farmee is entitled to proper notice of default and the opportunity to rectify that default.

Introducing Conditional Immediate Indefeasibility: Section 170(1) of the Land Titles Act

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Legislation commented on: Land Titles Act, RSA 2000, c. L-4, s 170(1), as amended by the Land Titles Amendment Act, 2008, SA 2008, c 22, s 9.

The amendments to the Land Titles Act that were introduced by the Land Titles Amendment Act, 2008 included one substantive amendment and that was an amendment to section 170, a provision about indefeasibility of title. Little attention has been paid to this amendment; although it is now four years old, the changes it effected, and the amendment’s potential consequences for real estate practice, appear to have been overlooked. On its face, the substantive amendment says that the registered title of a bona fide purchaser or mortgagee is only indefeasible if that party used all reasonable efforts to confirm that the person from whom they took their interest was not an identity thief. It appears to implement a theory of conditional immediate indefeasibility, which would be a significant change to basic principles of our Torrens-style land titles system — if it is effective. However, because the 2008 amending statute changed section 170 in isolation and left intact all of the other provisions in the Land Titles Act that confer immediate indefeasibility on purchasers and mortgagees, it is not clear that the amendment will do what it purports to do.

Condominiums, Caregivers and Human Rights

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Case commented on: Condominium Plan No 9910225 v Davis, 2013 ABQB 49.

Anyone who has seen the film Amour knows that caring for an ill and elderly loved one can be an impossibly demanding task, both physically and emotionally. Many families turn to live-in caregivers in these circumstances. When those being cared for live in a condominium, and the condominium’s bylaws purport to restrict the use of live-in caregivers, what legal avenues are open to challenge the bylaws, or decisions made on the basis of the bylaws? This scenario arose in Condominium Plan No. 9910225 v Davis. Justice R. G. Stevens dealt with the issue as one of interpretation of the bylaws, but also suggested that human rights legislation was not an option in this type of case. I will argue in this post that human rights legislation does apply in the context of condominiums, and provides an important avenue of redress.

The Expanding use of the Oppression Remedy may give legal teeth to Corporate Social Responsibility

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Case considered: Wrzesien v Arnett & Burgess Pipeliners Ltd, 2013 ABQB 59.

The oppression remedy is a statutory right available under section 242 of the Alberta Business Corporation Act, RSA 2000, c B-9 [ABCA] and other corporate statutes in Canada. The remedy is a powerful tool for correcting prejudicial, unfair and oppressive conduct. It is available to shareholders, directors and officers who have been oppressed or unreasonably prejudiced through corporate conduct. Under the legislation a creditor may utilize the oppression remedy only if the court exercises its discretion to find that the creditor is a ‘proper person’ to make an application under the oppression remedy (ABCA, s 239).

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