2123201 Ontario Inc. v. Israel Estate, 2016 ONCA 409

JudgeLaskin, Pardu and Roberts, JJ.A.
CourtCourt of Appeal (Ontario)
Case DateNovember 27, 2015
JurisdictionOntario
Citations2016 ONCA 409;(2016), 349 O.A.C. 200 (CA)

2123201 Ont. v. Israel Estate (2016), 349 O.A.C. 200 (CA)

MLB headnote and full text

Temp. Cite: [2016] O.A.C. TBEd. MY.029

2123201 Ontario Inc. (applicant/appellant) v. The Estate of Harold Israel by his Estate Trustee, Ken Israel (respondent/respondent)

(C60033; 2016 ONCA 409)

Indexed As: 2123201 Ontario Inc. v. Israel Estate

Ontario Court of Appeal

Laskin, Pardu and Roberts, JJ.A.

May 27, 2016.

Summary:

A sold land to B. At the same time, A and B entered into an agreement that A could repurchase the land if a condition under B's control was met. At issue was whether the agreement gave A an interest in the land, or only a personal contractual right.

The Ontario Superior Court, in a decision with neutral citation 2015 ONSC 538, held that the agreement was not an option agreement that created an interest in land, but something akin to a right of first refusal, which did not create any interest in land. The right in issue therefore was a personal right. Accordingly, the rule against perpetuities had no application. An appeal was filed.

The Ontario Court of Appeal allowed the appeal. The court held that this was an issue of contract interpretation (i.e., to determine the true intent of the parties at the time the agreement was made). The court opined that the purpose of the agreement, the context in which it was made, its terms, and the conduct of the parties under it, showed an intention to give A an option to repurchase the land, which gave rise to an immediate, equitable interest in the land. The trial judge's conclusion that A had something only akin to a right of first refusal was unreasonable, justifying appellate intervention.

Sale of Land - Topic 1722

The contract - Offer and acceptance - Options - What constitutes an option - See paragraphs 16 to 45.

Sale of Land - Topic 1765

The contract - Offer and acceptance - Right of first refusal - What constitutes - See paragraphs 16 to 45.

Counsel:

Randell K. Thomson, for the appellant;

Steven W. Pettipiere, for the respondent.

This appeal was heard on November 27, 2015, before Laskin, Pardu and Roberts, JJ.A., of the Ontario Court of Appeal. The following decision was delivered for the court by Laskin, J.A., on May 27, 2016.

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29 practice notes
  • Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage District, 2021 SCC 7
    • Canada
    • Supreme Court (Canada)
    • February 5, 2021
    ...Ltd. v. Royal Bank of Canada, [1995] 2 S.C.R. 187; Greenberg v. Meffert (1985), 50 O.R. (2d) 755; 2123201 Ontario Inc. v. Israel Estate, 2016 ONCA 409, 130 O.R. (3d) 641; LeMesurier v. Andrus (1986), 54 O.R. (2d) 1; Jack Wookey Hldg. Ltd. v. Tanizul Timber Ltd. (1988), 27 B.C.L.R. (2d) 221;......
  • Court Of Appeal Summaries (November 22-26, 2021)
    • Canada
    • Mondaq Canada
    • November 30, 2021
    ...E, Canadian Long Island Petroleums Ltd. et al. v. Irving Industries Ltd., [1975] 2 S.C.R. 715, 2123201 Ontario Inc. v. Israel Estate, 2016 ONCA 409, London and South Western Railway Co. v. Gomm (1882), 20 CH. D. 562 (C.A.), Sattva Capital Corp. v. Creston Moly Corp., 2014 SCC 53, City of Ha......
  • Court Of Appeal Summaries (November 22-26, 2021)
    • Canada
    • Mondaq Canada
    • November 30, 2021
    ...E, Canadian Long Island Petroleums Ltd. et al. v. Irving Industries Ltd., [1975] 2 S.C.R. 715, 2123201 Ontario Inc. v. Israel Estate, 2016 ONCA 409, London and South Western Railway Co. v. Gomm (1882), 20 CH. D. 562 (C.A.), Sattva Capital Corp. v. Creston Moly Corp., 2014 SCC 53, City of Ha......
  • General Principles of Interpretation
    • Canada
    • Irwin Books The Law of Contracts. Third Edition Interpretation of Agreements
    • August 4, 2020
    ...OR (3d) 677, 397 DLR (4th) 485. 325 Wade v Duck , 2018 BCCA 176, 422 DLR (4th) 423 at para 28. 326 2123201 Ontario Inc v Israel Estate , 2016 ONCA 409 at para 44. General Principles of Interpretation 861 FURTHER READINGS BARAK, A. Purposive Interpretation in Law (Princeton: Princeton Univer......
  • Request a trial to view additional results
18 cases
  • Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage District, 2021 SCC 7
    • Canada
    • Supreme Court (Canada)
    • February 5, 2021
    ...Ltd. v. Royal Bank of Canada, [1995] 2 S.C.R. 187; Greenberg v. Meffert (1985), 50 O.R. (2d) 755; 2123201 Ontario Inc. v. Israel Estate, 2016 ONCA 409, 130 O.R. (3d) 641; LeMesurier v. Andrus (1986), 54 O.R. (2d) 1; Jack Wookey Hldg. Ltd. v. Tanizul Timber Ltd. (1988), 27 B.C.L.R. (2d) 221;......
  • York Region Condominium Corporation No. 890 v. Market Village Markham Inc., 2020 ONSC 3993
    • Canada
    • Superior Court of Justice of Ontario (Canada)
    • June 29, 2020
    ...10. [16] 2014 SCC 53, 2 S.C.R. 633. [17] 2016 NSSC 146, 375 N.S.R. (2d) 61, at para. 32. [18] 2123201 Ontario Inc. v. Israel Estate, 2016 ONCA 409, 130 O.R. (3d) 652, at para. [19] Weidelich v. De Koning, 2014 ONCA 736, 122 O.R. (3d) 545, at para. 15, adopting with approval B & Q Plc v.......
  • GMC Properties Inc. v. Rampart Estates Ltd., 2023 BCCA 172
    • Canada
    • Court of Appeal (British Columbia)
    • April 21, 2023
    ...including Barabash v. Nand, [1980] A.J. No. 586, Sandhu v. Chan, 2017 BCSC 1279 and 2123201 Ontario Inc. v. Israel Estate, 2016 ONCA 409.  Rampart responded that those authorities were distinguishable, and that the due diligence conditions were purely subjective and thus not a tru......
  • GMC Properties Inc. v Rampart Estates Ltd,
    • Canada
    • Court of Appeal (British Columbia)
    • April 21, 2023
    ...authorities, including Barabash v. Nand, [1980] A.J. No. 586, Sandhu v. Chan, 2017 BCSC 1279 and 2123201 Ontario Inc. v. Israel Estate, 2016 ONCA 409. Rampart responded that those authorities were distinguishable, and that the due diligence conditions were purely subjective and thus not a t......
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6 firm's commentaries
  • Court Of Appeal Summaries (November 22-26, 2021)
    • Canada
    • Mondaq Canada
    • November 30, 2021
    ...E, Canadian Long Island Petroleums Ltd. et al. v. Irving Industries Ltd., [1975] 2 S.C.R. 715, 2123201 Ontario Inc. v. Israel Estate, 2016 ONCA 409, London and South Western Railway Co. v. Gomm (1882), 20 CH. D. 562 (C.A.), Sattva Capital Corp. v. Creston Moly Corp., 2014 SCC 53, City of Ha......
  • Court Of Appeal Summaries (November 22-26, 2021)
    • Canada
    • Mondaq Canada
    • November 30, 2021
    ...E, Canadian Long Island Petroleums Ltd. et al. v. Irving Industries Ltd., [1975] 2 S.C.R. 715, 2123201 Ontario Inc. v. Israel Estate, 2016 ONCA 409, London and South Western Railway Co. v. Gomm (1882), 20 CH. D. 562 (C.A.), Sattva Capital Corp. v. Creston Moly Corp., 2014 SCC 53, City of Ha......
  • Ontario Court Of Appeal Summaries (May 24-27)
    • Canada
    • Mondaq Canada
    • June 6, 2016
    ...an investigation pursuant to its powers, and determined that there was no basis to intervene. 2123201 Ontario Inc. v. Israel Estate, 2016 ONCA 409 [Laskin, Pardu and Roberts JJ.A] Counsel: Randell K. Thomson, for the appellant Steven W. Pettipiere, for the respondent Keywords: Contracts, Re......
  • Not Optional: The Enforceability Of Options To Purchase Land In Restructurings
    • Canada
    • Mondaq Canada
    • February 16, 2021
    ...whether the creditors of CIM Bayview will direct the trustee to continue the appeal. Footnotes 1. 2123201 Ontario Inc. v. Israel Estate, 2016 ONCA 409 at para. 2. See e.g. Weinblatt v. Kitchener (City), 1968 CanLII 31 (SCC). 3. See e.g. Canadian Long Island Petroleums Ltd. v. Irving Wire Pr......
  • Request a trial to view additional results
3 books & journal articles
  • Sources of Rights
    • Canada
    • Irwin Books The Law of Property
    • August 5, 2021
    ...]. See also Mountford v Scott , [1975] Ch 258. 209 Canadian , above note 208. 210 Ibid . See also 2123201 Ontario Inc v Israel Estate , 2016 ONCA 409. 211 [1980] Ch 338 (CA). 212 Ibid at 389. 213 RSBC 1996, c 377, s 9; see also Law of Property Act , RSA 2000, c L-7, s 63. Sources of Right s......
  • Table of Cases
    • Canada
    • Irwin Books The Law of Property
    • August 5, 2021
    ...69 1832732 Ontario Corp v Regina Properties Ltd, 2018 ONSC 7643 ....................141 2123201 Ontario Inc v Israel Estate, 2016 ONCA 409 ....................................... 224 859587 Ontario Ltd v Starmark Property Management Ltd (1998), 164 DLR (4th) 167, 40 OR (3d) 481 (CA) .............
  • General Principles of Interpretation
    • Canada
    • Irwin Books The Law of Contracts. Third Edition Interpretation of Agreements
    • August 4, 2020
    ...OR (3d) 677, 397 DLR (4th) 485. 325 Wade v Duck , 2018 BCCA 176, 422 DLR (4th) 423 at para 28. 326 2123201 Ontario Inc v Israel Estate , 2016 ONCA 409 at para 44. General Principles of Interpretation 861 FURTHER READINGS BARAK, A. Purposive Interpretation in Law (Princeton: Princeton Univer......

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