Atlantic Steel Buildings Ltd. v. The Cayman Group Ltd., Motion Tire Ltd., McGrath, MacGuire, Co-Operative Trust Co. of Canada and Midas Realty Corp. of Canada Inc., (1982) 50 N.S.R.(2d) 609 (CA)

JudgeMacKeigan, C.J.N.S., Macdonald and Pace, JJ.A.
CourtSupreme Court of Nova Scotia (Canada)
Case DateMarch 18, 1982
JurisdictionNova Scotia
Citations(1982), 50 N.S.R.(2d) 609 (CA)

Atlantic Steel v. Cayman Group (1982), 50 N.S.R.(2d) 609 (CA);

    98 A.P.R. 609

MLB headnote and full text

Atlantic Steel Buildings Limited v. The Cayman Group Limited, Motion Tire Limited, McGrath, MacGuire, Co-Operative Trust Company of Canada and Midas Realm Corporation of Canada Inc.

(No. CH 27581, 28434, 28435, 31586)

Indexed As: Atlantic Steel Buildings Ltd. v. The Cayman Group Ltd., Motion Tire Ltd., McGrath, MacGuire, Co-Operative Trust Co. of Canada and Midas Realty Corp. of Canada Inc.

Nova Scotia Supreme Court

Appeal Division

MacKeigan, C.J.N.S., Macdonald and Pace, JJ.A.

March 18, 1982.

Summary:

Atlantic Steel Buildings Limited brought a mechanics' lien action respecting a building it constructed on leased and mortgaged land. Atlantic's lien was not registered and no notice of the lien was given to the owner or mortgagee, but Atlantic claimed shelter under a previously registered lien by another party. Atlantic also claimed that the mortgagee was estopped from disputing the lien's priority, because the mortgagee promised that Atlantic would be paid out of the mortgage advance in order to induce Atlantic not to file its lien. In a judgment reported at paragraphs 31 to 45 below the Nova Scotia County Court held that Atlantic was entitled to shelter under the previous lien and that its lien took priority over the mortgagee's advance. Then the lessee, which had called no evidence at the trial, applied to introduce further evidence on the issue of priority between Atlantic and the lease. In a judgment reported at paragraphs 46 to 65 below the Nova Scotia County Court dismissed the application on the grounds that the lessee's counsel did not merely make a slip, but misconceived the entire course of action and that the application was made too late.

The mortgagee appealed on the issue of priority between it and Atlantic.

The Nova Scotia Court of Appeal allowed the appeal and held that the mortgage took priority over Atlantic's lien, because the lien was not registered and no notice of it was given. Further, the Court of Appeal held that the doctrine of promissory estoppel did not apply, because there was no legal relationship between the mortgagee and Atlantic.

Estoppel - Topic 475

Practice - Pleading - Necessity for - The Nova Scotia Court of Appeal stated that, whether or not estoppel must be pleaded, an opposing party must be given full opportunity to meet a plea of estoppel - See paragraphs 25 to 26.

Estoppel - Topic 701

Estoppel by conduct - Promissory estoppel - A mechanics' lien claimant pleaded that a mortgagee was estopped from claiming priority of the mortgage over the lien, because the mortgagee promised that the claimant would be paid out of the mortgagee advance in order to induce the claimant not to file the lien - The Nova Scotia Court of Appeal held that the plea of estoppel was inapplicable, because there was no legal relationship between the mortgagee and the lien claimant - See paragraphs 17 to 24 - The Court of Appeal also stated that a detriment was a prerequisite to a plea of estoppel - See paragraphs 25 to 26.

Mechanics' Liens - Topic 6301

Priorities - Between lien holder and mortgagee - The Nova Scotia Court of Appeal held that a lien did not take priority over a mortgage advance under s. 14(1) of the Mechanics Lien Act, R.S.N.S. 1967, c. 178, because the lien was not registered and no notice of it was given to the mortgagee - See paragraphs 1 to 17.

Practice - Topic 3558

Evidence - General principles - Leave to offer further evidence after judgment - In a mechanics' lien action the lessee of the land called no evidence - After judgment the lessee applied to adduce evidence on the issue of priority between the lessee and the lien holder - The application was made four months after judgment - The Nova Scotia County Court dismissed the application on the grounds that the lessee's counsel did not merely make a slip, but misconceived the entire course of action and at the application was made too late - See paragraphs 46 to 65.

Cases Noticed:

Cook v. Koldoffsky (1916), 28 D.L.R. 347; 35 O.L.R. 555; 90 O.W.N. 433, appld. [para. 15].

D. Porter & Son v. MacLeod (1951), 29 M.P.R. 83, appld. [para. 15].

Dorbern Investments Ltd. v. The Provincial Bank of Canada et al., [1981] 1 S.C.R. 459; 37 N.R. 74, appld. [para. 16].

Central London Property Trust Ltd. v. High Trees House Ltd., [1947] K.B. 130, consd. [para. 18].

John Burrows Ltd. v. Subsurface Surveys Ltd. et al., [1968] S.C.R. 607; 68 D.L.R.(2d) 354, consd. [para. 19].

Evenden v. Guildford City Football Club Ltd., [1975] 3 All E.R. 269, consd. [para. 21].

Durham Fancy Goods Ltd. v. Michael Jackson (Fancy Goods) Ltd., [1968] 2 All E.R. 987, consd. [para. 22].

Statutes Noticed:

Civil Procedure Rules (N.S.), rule 31.09 [para. 53].

Mechanics Lien Act, R.S.N.S. 1967, c. 178, sect. 14(1) [para. 14, 34].

Authors and Works Noticed:

Spencer Bower and Turner, Estoppel By Representation (3rd Ed.), pp. 378 et seq. [para. 23]; 380-381 [para. 20].

Counsel:

G.W. MacDonald, for the appellant;

M.S. Ryan, for the respondent, Atlantic Steel Buildings Limited;

R.G. Grant and Deborah Carver, for the respondent, Midas Realty Corporation of Canada Inc.

This case was heard on January 29, 1982, at Halifax, Nova Scotia, before MACKEIGAN, C.J.N.S., MACDONALD and PACE, JJ.A., of the Nova Scotia Supreme Court, Appeal Division.

On March 18, 1982, MACDONALD, J.A., delivered the following judgment for the Appeal Division:

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7 practice notes
  • Trial Lawyers Association of British Columbia v. Royal & Sun Alliance Insurance Company of Canada,
    • Canada
    • Supreme Court (Canada)
    • 18 Noviembre 2021
    ...Superior Oil Ltd. v. Paddon‑Hughes Development Co., [1970] S.C.R. 932; Atlantic Steel Buildings Ltd. v. Cayman Group Ltd. (1982), 50 N.S.R. (2d) 609; Engineered Homes Ltd. v. Mason, [1983] 1 S.C.R. 641; Progressive Homes Ltd. v. Lombard General Insurance Co. of Canada, 2010 SCC 33, [......
  • Campbell et al. v. Inverness (County), (1990) 98 N.S.R.(2d) 330 (TD)
    • Canada
    • Nova Scotia Supreme Court of Nova Scotia (Canada)
    • 1 Diciembre 1989
    ...The Cayman Group Ltd., Motion Tire Ltd., McGrath, MacGuire, Co-operative Trust Co. of Canada and Midas Realty Corp. of Canada Inc. (1982), 50 N.S.R.(2d) 609; 98 A.P.R. 609; 134 D.L.R.(3d) 316, appld. [para. Statutes Noticed: Corporations Miscellaneous Provisions Act, R.S.N.S. 1989, c. 100, ......
  • Millet v. Murhpy, [2011] N.S.R.(2d) Uned. 70 (SmCl)
    • Canada
    • Small Claims Court of Nova Scotia (Canada)
    • 1 Abril 2011
    ...face directly on point. Re Co-operative Trust Co. of Canada and Atlantic Steel Buildings Ltd. et al. (1982), 134 D.L.R. (3rd) 316 ; (1982), 50 N.S.R. (2d) 609 dealt with a circumstance where there was no existing contract between the parties (i.e. a mortgage and a mechanics' lien Claimant).......
  • Lewis-Choi Enterprises Ltd. v. Western Glove Works Ltd., (1993) 121 N.S.R.(2d) 1 (TD)
    • Canada
    • Nova Scotia Supreme Court of Nova Scotia (Canada)
    • 24 Febrero 1993
    ...Surveys Ltd., [1968] S.C.R. 607 ; 68 D.L.R.(2d) 354 , refd to. [para. 92]. Atlantic Steel Buildings Ltd. v. Cayman Group et al. (1982), 50 N.S.R.(2d) 609; 98 A.P.R. 609 (C.A.), refd to. [para. Schuler (L) AG v. Wickman Machine Tool Sales Ltd., [1974] A.C. 235 , refd to. [para. 104]. Au......
  • Request a trial to view additional results
7 cases
  • Trial Lawyers Association of British Columbia v. Royal & Sun Alliance Insurance Company of Canada,
    • Canada
    • Supreme Court (Canada)
    • 18 Noviembre 2021
    ...Superior Oil Ltd. v. Paddon‑Hughes Development Co., [1970] S.C.R. 932; Atlantic Steel Buildings Ltd. v. Cayman Group Ltd. (1982), 50 N.S.R. (2d) 609; Engineered Homes Ltd. v. Mason, [1983] 1 S.C.R. 641; Progressive Homes Ltd. v. Lombard General Insurance Co. of Canada, 2010 SCC 33, [......
  • Campbell et al. v. Inverness (County), (1990) 98 N.S.R.(2d) 330 (TD)
    • Canada
    • Nova Scotia Supreme Court of Nova Scotia (Canada)
    • 1 Diciembre 1989
    ...The Cayman Group Ltd., Motion Tire Ltd., McGrath, MacGuire, Co-operative Trust Co. of Canada and Midas Realty Corp. of Canada Inc. (1982), 50 N.S.R.(2d) 609; 98 A.P.R. 609; 134 D.L.R.(3d) 316, appld. [para. Statutes Noticed: Corporations Miscellaneous Provisions Act, R.S.N.S. 1989, c. 100, ......
  • Millet v. Murhpy, [2011] N.S.R.(2d) Uned. 70 (SmCl)
    • Canada
    • Small Claims Court of Nova Scotia (Canada)
    • 1 Abril 2011
    ...face directly on point. Re Co-operative Trust Co. of Canada and Atlantic Steel Buildings Ltd. et al. (1982), 134 D.L.R. (3rd) 316 ; (1982), 50 N.S.R. (2d) 609 dealt with a circumstance where there was no existing contract between the parties (i.e. a mortgage and a mechanics' lien Claimant).......
  • Lewis-Choi Enterprises Ltd. v. Western Glove Works Ltd., (1993) 121 N.S.R.(2d) 1 (TD)
    • Canada
    • Nova Scotia Supreme Court of Nova Scotia (Canada)
    • 24 Febrero 1993
    ...Surveys Ltd., [1968] S.C.R. 607 ; 68 D.L.R.(2d) 354 , refd to. [para. 92]. Atlantic Steel Buildings Ltd. v. Cayman Group et al. (1982), 50 N.S.R.(2d) 609; 98 A.P.R. 609 (C.A.), refd to. [para. Schuler (L) AG v. Wickman Machine Tool Sales Ltd., [1974] A.C. 235 , refd to. [para. 104]. Au......
  • Request a trial to view additional results

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