Nova Scotia Business Capital Corp. v. Coxheath Gold Holdings Ltd. et al., (1993) 128 N.S.R.(2d) 118 (SC)

• Court: Supreme Court of Nova Scotia (Canada)
• Case Date: December 15, 1993
• Jurisdiction: Nova Scotia
• Citations: (1993), 128 N.S.R.(2d) 118 (SC)

Business Capital v. Coxheath Gold (1993), 128 N.S.R.(2d) 118 (SC);

  359 A.P.R. 118

MLB headnote and full text

Nova Scotia Business Capital Corporation, a body corporate (plaintiff) v. Coxheath Gold Holdings Limited, a body corporate and Michael J. Riddell and Doane Raymond Limited, Trustee under a Proposal in Bankruptcy made by Coxheath Gold Holdings Limited (defendants) and Dennis Forgeron, Wilfred Moore, William Faulkner and Thomas Faulkner (intervenors)

(S.H. No. 81401)

Indexed As: Nova Scotia Business Capital Corp. v. Coxheath Gold Holdings Ltd. et al.

Nova Scotia Supreme Court

Palmeter, A.C.J.

December 23, 1993.

Summary:

A trustee in Bankruptcy applied for an order permitting it to sell the assets and undertakings of the bankrupt free from any third party claims.

The Nova Scotia Supreme Court allowed the application.

Mines and Minerals - Topic 1768

Mining claims - Royalty agreements - Whether royalty rights constitute an inter­est in land - Coxheath granted Forgeron a 2.5% net smelter return royalty - Forgeron eventually transferred his royalty - Cox­heath executed a debenture charging its mineral estates - The holders of the return royalties claimed that they had an interest in land - The Nova Scotia Supreme Court held that the royalties claimed did not constitute an interest in land but were contractual in nature - See paragraphs 10 to 21.

Cases Noticed:

Saskatchewan Minerals v. Keyes, [1972] S.C.R. 703, refd to. [para. 13].

Scurry-Rainbow Oil Ltd. et al. v. Gallo­way Estate (1993), 138 A.R. 321; 4 W.W.R. 454 (Q.B.), dist. [para. 13].

St. Lawrence Petroleum Ltd. v. Bailey Shelburn Oil & Gas Ltd. (1961), 36 W.W.R.(N.S.) 167 (Alta. S.C.), affd. 41 W.W.R.(N.S.) 210 (C.A.), affd. [1963] S.C.R. 482, refd to. [para. 17].

Bensette v. Reece, [1973] 2 W.W.R. 497 (Sask. C.A.), dist. [para. 19].

Isaac v. Cook (1982), 43 A.R. 1; 44 C.B.R.(N.S.) 39 (N.W.T.S.C.), refd to. [para. 20].

Northern Mines Ltd., Re - see Isaac v. Cook.

Statutes Noticed:

Civil Procedure Rules (N.S.), rule 54.03(1)(c) [para. 1].

Counsel:

David Farrar and Claire Emma Milton, for the plaintiff;

Michael J. Riddell, for himself and Entre­preneurial Management Ltd., Asset Soft­ware Ltd., Mile High Mining Ltd. and International Geochemical Associates Ltd.;

Joel Fichaud, for Tangier Mining Inc.;

Reginald A. Cluney, Q.C., for the intervenors.

This application was heard in Halifax, Nova Scotia, on December 15, 1993, by Palmeter, A.C.J., of the Nova Scotia Supreme Court, who delivered the following judgment on December 23, 1993.