Rathwell v. Rathwell, [1978] 2 S.C.R. 436 (1978)

Extract

---

Rathwell v. Rathwell, [1978] 2 S.C.R. 436 (1978)

SUPREME COURT OF

CANADA

Rathwell v. Rathwell, [1978] 2 S.C.R. 436

Date: 1978-01-19

Lloyd William Thomas Rathwell

(Defendant) Appellant;

and

Helen Marie Rathwell (Plaintiff) Respondent.

1977: May 10, 11; 1978: January 19.

Present: Laskin C.J. and Martland, Judson, Ritchie, Spence, Pigeon, Dickson, Beetz and de Grandpré JJ.

ON APPEAL FROM THE COURT OF APPEAL FOR SASKATCHEWAN

Husband and wife - Matrimonial property - Farmlands registered in husband's name - Purchases paid for in part out of joint account - Contribution by wife of both money and labour to farming operation - Intention of parties to treat operation as joint venture - Wife's claim to half-interest - Application of doctrine of resulting trust - Constructive trust,

The appellant and the respondent (Mr, and Mrs. Rathwell) were married on July 4, 1944. He was a soldier, 24 years of age. She was an administrative clerk in the Royal Canadian Air Force, 21 years of age. Six months later she left the Air Force and went to live with her husband's parents on their farm. He was posted overseas. Following his return to Canada and discharge from the Army, the appellant and his wife decided to make farming their way of life.

They opened a joint bank account in which their wartime savings (about $700 each) were deposited. It was the only account they ever had. During their mar­ried life all the moneys they received, or to which they became entitled, went into the joint account and all payments, for whatever purpose, were made therefrom.

In 1946, moneys from the joint account were used to provide the $780 initial payment on two quarter-sections of land purchased under the Veterans' Land Act. The balance of the purchase price, amounting to $4,020, was paid by delivery each year of one-sixth of the grain harvested.

A second land purchase, also under the Veterans' Land Act, was made in 1947 and consisted of two adjoining quarter-sections. The down payment of $1,000 again came from the joint account and the balance of $6,000 was met by crop share payments.

A third purchase (in excess of a section) was made in 1958. The price was $7,000 of which $4,000 was paid from the joint account. The balance was satisfied through farm work, such as combining, seeding and summer fallowing, done by Mr. Rathwell for the vendor of the land.

Title to all of the above lands issued in Mr. Rathwell's name, in 1957 and 1959. There was no discussion be­tween him and his wife concerning beneficial ownership of the land, apart from the statement by him from time to time that the lands were "ours". According to Mr. Rathwell, they were "working together as a husband and wife in the farming business". The venture was a "joint effort" in which, Mr. Rathwell said, he and his wife "worked as a team, to start with". Mr. Rathwell acknowledged that his wife contributed "to an extent". In fact, it was to a considerable extent. Mrs. Rathwell did the chores when her husband was busy on the land; she looked after the garden and canned the produce; she milked cows and sold the cream; she drove machinery, bailed hay, provided meals and transportation for hired help and kept the books and records of the farming operation. Often, while Mr. Rathwell worked the fields, she fulfilled his obligations under a contract to drive the school bus. She raised and educated four children.

Marital difficulties led to the separation of Mr. and Mrs. Rathwell in 1967. Thereafter, Mr. Rathwell, with the agreement of his wife, leased the lands to their son, Duane, and mortgaged part of the lands to raise money for the purchase of other property for Duane. Mrs. Rathwell, to further her son's interests, released her homestead rights to the mortgagee.

Although Mr. Rathwell ceased farming in 1970, he acquired from his mother, in 1971, two further quarter-sections of land for $2,000. The acquisition was largely by way of gift, as the value of the land far exceeded the price paid.

An action was commenced by Mrs. Rathwell for a declaration that she had an interest in one-half of all real and personal property owned by her husband, and for an accounting of all income and benefits returned by the property. Both the trial judge and the Court of Appeal for Saskatchewan rejected any claim by Mrs. Rathwell in respect of the lands purchased in 1971. The trial judge rejected her claim entirely. Two of the judge...

See the full content of this document

If you are already a vLex customer, access here

---