1244034 Alberta Ltd. v. Walton International Group Inc. et al.,

• Judge: Hunt, Berger and Slatter, JJ.A.
• Court: Court of Appeal (Alberta)
• Citation: (2007), 422 A.R. 189 (CA),2007 ABCA 372
• Date: 07 September 2007

1244034 Alta. Ltd. v. Walton Intl. Group (2007), 422 A.R. 189 (CA);

      415 W.A.C. 189

MLB headnote and full text

Temp. Cite: [2007] A.R. TBEd. NO.106

1244034 Alberta Ltd. (appellant/plaintiff) v. Walton International Group Inc. and Brent Bailey

(respondents/defendants)

Walton International Group Inc. (respondent/plaintiff by counterclaim/defendant) v. 1244034 Alberta Ltd. (appellant/defendant by counterclaim/plaintiff) and Shun King Chan, Joseph To Pui Choi, Cora Hoi Yee Chiu, Jeremy Chun Kit Wong, Hong Yao, Wenqin Shi, Benjamin Fu, Craig Argyll Armour, Andy Ka Wai Cheung, Sophie Shuk Fai Lau, Grace Chi Sze Ho, Richard Way, Georgiana Hang Kuen Lam, Tak Ming Cheng, Wilkie Wai Kei Lo, Shadow Shu Ling Ho, Bik Yee Chan, Amy Suk Yee Chan, Lisa Mun Wai Lam, Rajammal Anandan Swamickannu, Kim Hoon Ng, Velayutham V. Ramasamy, Kasthuri Thilaga Munikrishnan, Karunakaren Balasundram, Asha Kumari Chhunnu Lal, Fook Tien Ngiam, Chuan Huat Tan, Chiew Moi Chong, Chee Keong Yap, Lie Yuen Chia, Wai Hoong Lee, Cheng Lim Lee, Meng Hon Yong, Chow Joon Lee, 322842 Alberta Ltd., Yuh Wen Low, Li Li Low, Tse Peng Low, Loon Kee Lee, Yew Kee Phang, Choon Chiew Goh, Hajeedar Abdul Majid, Mun Yoong Wong, Min Chung Siew, Ven Tjin Siew, Geok Kwong Sim, Tow Koon Tan, Li Kian Christina Chan, Claudio Giovanni Balestra, Vince Tucker, Nasri Gebrail Tarzibashi, Daisy Tarzibashi, Lynda Lillies, Allan Lillies, Terry Langridge, Linda Lou Leszczak, Ellen Hill, Shel J. Laven, Svetlana Shklarov, Catherine Bunton, Frank Nishimura, Juliette Nishimura, 631752 Alberta Ltd., Kam Wan Chan, IB C. Moller, Quill Lake Investments Ltd., Ian Get, Cheryl Gent, Jonathan Craig Blocksom, David Walker, Brenda M'Clellan, Sovereign Financial Services Ltd., David Marriner, Dawn Whitworth, Hasnah Mohammed, Allen Leong Yew Tuck Leong, Linda Sui Lai Kong, Julian Szirtes, Elizabeth Szirtes, Glen D. Andrews, Shanott Holdings Ltd., Dennis Riske, Ulf Broda, Donna Broda, Larry Poon, Nancy Poon, Deborah Pratt, Gregory Pratt, Bob Marks Pontiac-Buick Ltd., Gloria Ureta, Better Built Homes (1977) Ltd., Darrel Bender, Marianne Bender, Erin Eileen Fetter, Wilson Si-Fu Pong, Yu-Ping Li Pong, Julita Nisperos, Aurora Tabios, Doran R. Larson, Kum Yuet Lui, Quen Yee Wong, Jiri Bartek, Pavla Bartek, Swee Chong Ow Yong, Ah Leng Toh, Philip Hoe Wai Lam, Charles Kok Wee Ng, Florence Carmela Choon Kheng Goh, Eng Chun Tan, Yin Yin Teo, Cheok Wah Thong, Poh Choo Tan, Robert L. Morris, Joe Gustafson, Siti Nuraishah Ishak, Valerie Stevenson, Gordon Stevenson, 1100539 Alberta Ltd., Central Rehabilitation Centre Ltd., T. Shirt 'N Things (Wholesale) Ltd., Deborah Christina Schmidt, William Glen Campbell, Alex Che Keng Chia, Vanessa Suay Suay Quek, Desmond Robert Soo, Conceptrix Advanced Solutions Inc., Raymond Chi Fai Leung, Richard Norman Nickel, Marlis Karen Nickel, David Nobrega, Teresa Nobrega, John Froese, Judith Froese, Linda Mackid, Selina Lai Ping Lam, Anthony Vincent Gabriel, Yaoqiang Hu, Horng Jen Lee, Franky Espehana, Titiek Semiarti Erawan, Siew Lian Chia, Leong Chuan Philip Yoo, Kenneth Kwok Shion Low, Lawrence Kowk Leon Low, Stacey Grantham, Robert Leggott, Linda Leggott, Seng Huat Koh, Doran R. Larson, Man Hin Chow, Grace Kwan Sin Mak, Shirley Voeller, Martin Voeller, Lai Kuen Ko, Kin Shing Wong, Alan Wan Lung Wong, Winny Wan Nei Wong, Shepherd Industrial Supply Company Ltd., Poo Teck Tan, Guet Ngoh Koh, Ham Finny Melia Hamdani, Guat Leng Chew, CES Technologies Inc., Wai Har Yuen, Damian Man Ching Chan, Barry Edmonson, Jean Campbell Edmonson, Gigi Shou Har Yuen, Chun Hung Cheng, Shuk Wa Chan, Peters Ho Ming Leung, Lori Bowes, Don Bowes, Rob Koski, Kristin Koski, Kaalimuthu, Somasunthare T. Appavu, Chong Hun Sia, Mei Hang Liu, Joel Kok Wai Lam, Catherine Heung Ying Ho, Conrad Kwan Hon Mak, Cheuk Hung Lee, Ngan Yoke Poon, Bee See Chew, Wong Hwee Sung, Lam Hong Grace Teo, Kong Pang, Chiew Yim Tan, Huey Jiuan Kam, Yeen Lee, Amin Suleman, Shainil Jessa, Chi Wah Leung, Walter Ping Kwan Chan, Ka Tan Ng, Vincent Shu Wah Yu, Dave Ogunnaike  (not parties to the appeal/defendants)

(0703-0116-AC; 0703-0117-AC; 2007 ABCA 372)

Indexed As: 1244034 Alberta Ltd. v. Walton International Group Inc. et al.

Alberta Court of Appeal

Hunt, Berger and Slatter, JJ.A.

November 22, 2007.

Summary:

Walton International purchased a parcel of land and sold 151 undivided interests in that land. The intention was to eventually sell the land and make a profit for the syndicated owners/investors. Any sale had to be approved by 60% of the syndicated owners. If an offer of sale was accepted, each of the syndicated investors had a right of first refusal. The right of first refusal was disclosed by a caveat filed by Walton. Walton entered into an agreement for purchase and sale with 1244034 Alberta Ltd. Walton obtained the approval of 60% of the syndicated owners and advised 1244034 that it had satisfied the vendor's conditions set out in the purchase and sale agreement. Thereafter, Walton provided notice to Bailey, one of the syndicated owners, that 60% approval had been received. Bailey gave notice to Walton that he was exercising his right of first refusal. Walton advised 1244034 that it was unable to complete the transaction. 1244034 filed a caveat protecting its interests and applied for an interim injunction restraining the conveyance of the land. Walton cross-applied to discharge 1244034's caveat.

The Alberta Court of Queen's Bench dismissed the application for an injunction, but allowed the cross-application.

The Alberta Court of Queen's Bench, in a decision reported at [2007] A.R. Uned. 201, ordered the removal of a lis pendens that 1244034 had filed. 1244034 appealed the orders removing the caveat and lis pendens.

The Alberta Court of Appeal, Slatter, J.A., dissenting, dismissed the appeal.

Real Property - Topic 7855

Title - Registration of instruments, etc. - Lis pendens or certificate of pending litigation - Vacating of - Grounds - Walton International purchased land and sold 151 undivided interests - The intention was to eventually sell the land and make a profit for the syndicated owners/investors - If an offer of sale was accepted, each of the syndicated owners had a right of first refusal - The right of first refusal was disclosed by a caveat filed by Walton - Walton entered into an agreement for purchase and sale with 1244034 Alberta Ltd. - Walton obtained the required approval of 60% of the syndicated owners and advised 1244034 that it had satisfied the vendor's condition set out in the purchase and sale agreement - Thereafter, Walton provided notice to Bailey, one of the syndicated owners, that 60% approval had been received - Bailey gave notice that he was exercising his right of first refusal - Walton advised 1244034 that it was unable to complete the transaction - 1244034 filed a caveat protecting its interests - A chambers judge granted Walton an order discharging 1244034's caveat and a lis pendens that 1244034 had filed - The Alberta Court of Appeal dismissed 1244034's appeal - The chambers judge concluded that an award of damages would suffice - Where specific performance was unavailable, there was no interest in the land capable of protection by caveat - Accordingly, there was no basis to tie up development of the land pending resolution of the litigation - See paragraphs 1 to 19.

Real Property - Topic 7925

Title - Registration of instruments, etc. - Caveat or cautions - Interests which may be protected - [See Real Property - Topic 7855 ].

Real Property - Topic 7929

Title - Registration of instruments, etc. - Caveat or cautions - Setting aside - Grounds - [See Real Property - Topic 7855 ].

Real Property - Topic 7930

Title - Registration of instruments, etc. - Caveat or cautions - Variation or discharge - [See Real Property - Topic 7855 ].

Cases Noticed:

Semelhago v. Paramadevan, [1996] 2 S.C.R. 415; 197 N.R. 379; 91 O.A.C. 379, refd to. [paras. 2, 31].

904060 Ontario Ltd. et al. v. 529566 Ontario Ltd. et al. (1999), 89 O.T.C. 112 (Gen. Div.), refd to. [para. 3].

1110049 Ontario Ltd. v. Exclusive Diamonds Inc. et al. (1995), 83 O.A.C. 391; 25 O.R.(3d) 417 (C.A.), refd to. [para. 8].

1174538 Ontario Ltd. v. Barzel Windsor (1984) Inc. et al., [1999] O.T.C. Uned. C01; 29 R.P.R.(3d) 256 (Sup. Ct.), refd to. [para. 8].

Earthworks 2000 Design Group Inc. et al. v. Spectacular Investments (Canada) Inc. et al., [2005] B.C.T.C. 22; 27 R.P.R.(4th) 142 (S.C.), refd to. [para. 8].

Monson v. West Barrhaven Development Inc. et al., [2000] O.T.C. Uned. D68 (Sup. Ct.), refd to. [para. 10].

410675 Alberta Ltd. v. Trail South Developments Inc. et al., [2001] A.R. Uned. 182; 43 R.P.R.(3d) 35; 2001 ABQB 442, affd. (2001), 293 A.R. 181; 257 W.A.C. 181; 45 R.P.R.(3d) 169; 2001 ABCA 274, leave to appeal dismissed (2002), 293 N.R. 190; 312 A.R. 340; 281 W.A.C. 340 (S.C.C.), refd to. [paras. 14, 32].

Arbutus Garden Homes Ltd. v. Arbutus Gardens Apartments Corp. et al., [1996] B.C.T.C. Uned. 341; [1996] 7 W.W.R. 338 (S.C.), refd to. [para. 14].

Domowicz v. Orsa Investments Ltd. (1993), 15 O.R.(3d) 661 (Gen. Div.), refd to. [para. 15].

Acquest/Alberta Mining Inc. v. Barry Developments Inc., [2000] 2 W.W.R. 543; 241 A.R. 1; 73 Alta. L.R.(3d) 252; 29 R.P.R.(3d) 18; 1999 ABQB 511, refd to. [paras. 17, 32].

Marlo Equities Ltd. v. Cline et al. (1998), 225 A.R. 87; 1998 ABQB 582 (Master), refd to. [paras. 17, 32].

Corse v. Ravenwood Homes Ltd. et al. (1998), 226 A.R. 214; 1998 ABQB 380 (Master), refd to. [para. 17].

McMurray Imperial Enterprises Ltd. v. Brimstone Acquisitions & Asset Management Inc. (1997), 210 A.R. 97 (Q.B. Master), refd to. [paras. 17, 32].

Main v. Jeerh et al. (2006), 384 A.R. 276; 367 W.A.C. 276; 59 Alta. L.R.(4th) 53; 43 R.P.R.(4th) 167; 2006 ABCA 138, refd to. [para. 29].

Baud Corp., N.V. v. Brook, [1979] 1 S.C.R. 633; 23 N.R. 181; 12 A.R. 271, refd to. [para. 31].

Asamera Oil Corp. v. Sea Oil and General Corp. et al. - see Baud Corp., N.V. v. Brook.

Oxford Development Group Inc. v. Midland Development Ltd., [1993] A.J. No. 47 (C.A.), refd to. [para. 32].

Festival City Holdings Ltd. v. Worthington Properties Inc., [2002] A.R. Uned. 278; 2002 ABQB 543 (Master), refd to. [para. 32].

United Gulf Developments Ltd. et al. v. Iskandar et al. (2004), 222 N.S.R.(2d) 137; 701 A.P.R. 137; 2004 NSCA 35, refd to. [para. 33].

Slater v. Sharma (1981), 36 A.R. 208 (Q.B. Master), refd to. [para. 33].

Howard v. Miller, [1915] A.C. 318; 7 W.W.R. 627; 20 B.C.R. 227; 22 D.L.R. 75 (P.C.), reving. (1913), 4 W.W.R. 1193 (S.C.C.), refd to. [para. 34].

Miller and Nicholson v. Howard - see Howard v. Miller.

Kimniak v. Anderson, [1929] 2 D.L.R. 904 (Ont. C.A.), refd to. [para. 34].

Alexander v. McKillop & Benjafield (1912), 45 S.C.R. 551; 1 D.L.R. 586; 20 W.L.R. 850; 1 W.W.R. 871, refd to. [para. 35].

Canada Trustco Mortgage Co. v. Skoretz, [1983] 4 W.W.R. 618; 45 A.R. 18; 26 Alta. L.R.(2d) 60; 147 D.L.R.(3d) 130 (Q.B.), refd to. [para. 38].

McFarland v. Hauser et al., [1979] 1 S.C.R. 337; 23 N.R. 362; 12 A.R. 332, refd to. [para. 39].

Holt, Renfrew & Co. v. Singer (Henry) Ltd. et al. (1982), 37 A.R. 90; 20 Alta. L.R.(2d) 97 (C.A.), refd to. [para. 42].

Authors and Works Noticed:

Anger, and Honsberger, The Law of Real Property (3rd Ed. 2006) (2007 Looseleaf), pp. 23-22 [para. 5]; 23-24 [para. 6].

Reiter and Sharpe, Wroth v. Tyler, Must Equity Remedy Contract Damages? (1979), 3 Can. Bus. L.J. 146, pp. 154, 155 [para. 15].

Counsel:

G.R. McKenzie, Q.C., for the appellant;

R.A. Coad, Q.C., for the respondent, Walton International Group Inc.;

W.J. Kenny, Q.C., and D.J. Hannaford, for the respondent, Brent Bailey.

This appeal was heard on September 7, 2007, by Hunt, Berger and Slatter, JJ.A., of the Alberta Court of Appeal. The memorandum of judgment for the court was filed on November 22, 2007, with the following opinions:

Berger, J.A. (Hunt, J.A., concurring) - see paragraphs 1 to 19;

Slatter, J.A., dissenting - see paragraphs 20 to 44.