Coopérants, Mutual Life Insurance Society (Liquidator of) v. Dubois, [1996] 1 S.C.R. 900 (1996)

Extract

---

Coopérants, Mutual Life Insurance Society (Liquidator of) v. Dubois, [1996] 1 S.C.R. 900 (1996)

Coopérants, Mutual Life Insurance

Society (Liquidator of) v. Dubois, [1996] 1 S.C.R. 900

Richard Dubois Appellant v.

Raymond, Chabot, Fafard, Gagnon Inc.,

in its capacity as provisional liquidator of

Coopérants, Mutual Life Insurance

Society/Les Coopérants,

Société mutuelle d'assurance-vie Respondent

Indexed as: Coopérants, Mutual Life Insurance Society (Liquidator of) v. Dubois

File No.: 23993.

1995: October 4; 1996: April 25.

Present: Lamer C.J. and L'Heureux-Dubé, Gonthier, McLachlin and Major JJ.

on appeal from the court of appeal for quebec

Corporations -- Winding-up -- Immovables in co-ownership -- Indivision agreements concluded between undivided co-owners of immovables -- Whether agreements valid and can be set up against liquidator -- Whether clause providing for mandatory sale of defaulting undivided co-owner's share at 75 percent of market value can be set up against liquidator.

Property -- Immovables in co-ownership -- Indivision agreements -- Validity -- Effect of winding-up on obligations under agreements.

D and C, a mutual life insurance society, are undivided co-owners of two immovables. Each immovable is the subject of a contract establishing undivided co-ownership and of an unregistered indivision agreement providing, inter alia, for a waiver of the right to demand a partition of the immovable property for a period of 35 years and for the mandatory sale of the interest of one undivided co-owner to the other in certain circumstances, including where one of the undivided co-owners applies to a court for the appointment of a liquidator for his or its property. In the event of a mandatory sale, the purchase price of the undivided share is the price offered by the purchasing co-owner. If that price is refused, the purchase price is set at 75 percent of the fair market value of the undivided interest, established on the basis of the value of the immovable as a whole, without regard to the fact that it is held in undivided co-ownership. In 1992, C applied for the appointment of a liquidator and D initiated the procedure set out in the indivision agreements for purchasing C's share by mandatory sale. The liquidator refu...

See the full content of this document

---