Greyhound Lines of Canada Ltd. v. Highfield Corp. and Olin (G.) Enterprises Ltd., (1984) 60 A.R. 304 (QB)

• Judge: Purvis, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: October 31, 1984
• Citations: (1984), 60 A.R. 304 (QB)

Greyhound v. Highfield Corp. (1984), 60 A.R. 304 (QB)

MLB headnote and full text

Greyhound Lines of Canada Ltd. v. Highfield Corporation Ltd. and G. Olin Enterprises Ltd.

(8203-45220)

Indexed As: Greyhound Lines of Canada Ltd. v. Highfield Corp. and Olin (G.) Enterprises Ltd.

Alberta Court of Queen's Bench

Judicial District of Edmonton

Purvis, J.

October 31, 1984.

Summary:

The plaintiff seller agreed to sell land in Edmonton to the defendant purchasers for $5,000,000.00. The purchasers paid $2,000,000.00 plus $303,700.00 interest under the agreement, then defaulted, leaving $3,000,000.00 plus interest payable. The seller brought an action for specific performance and obtained an order determining the agreement for sale. The purchasers applied for relief from forfeiture. A master of the Alberta Court of Queen's Bench dismissed the application. The purchasers appealed.

The Alberta Court of Queen's Bench dismissed the appeal and held that the purchasers were not entitled to relief from forfeiture, because the amount owing under the contract was more than the value of the land plus the amount paid.

Equity - Topic 1063

Equitable relief - Relief from forfeiture - Jurisdiction - The Alberta Court of Queen's Bench held that under s. 10 of the Judicature Act, R.S.A. 1980, c. J-1, the court had jurisdiction to relieve from forfeiture under an agreement for sale, notwithstanding that the agreement provided that the purchaser had no right to reclaim monies paid - See paragraphs 6 to 8.

Equity - Topic 1068

Equitable relief - Relief from forfeiture - Grounds for relief - The Alberta Court of Queen's Bench held that relief from forfeiture may be granted where a forfeiture clause is of a penal nature in the sense that the sum forfeited is out of all proportion to the damage and where it is unconscionable for the seller to retain the money - See paragraph 7 - The court refused relief from forfeiture under an agreement for sale, where the amount owing under the agreement was more than the value of the land plus the amount paid.

Sale of Land - Topic 8903

Remedies of purchaser - Relief from forfeiture - When available - A purchaser under an agreement for sale defaulted after paying $2,000,000.00 of the $5,000,000.00 price - The Alberta Court of Queen's Bench refused the purchaser relief from forfeiture of the amount paid, because the amount owing under the agreement was more than the value of the land plus the amount paid.

Cases Noticed:

Stockloser v. Johnston, [1954] 1 All E.R. 630, appld. [para. 7].

MacDonald v. Patterson Park Ltd. (1983), 42 A.R. 272, appld. [para. 11].

City of Edmonton v. A. & M. Developments Ltd., 17 R.P.R. 304, dist. [para. 16].

Statutes Noticed:

Judicature Act, R.S.A. 1980, c. J-1, sect. 10 [para. 6].

Counsel:

K.A. Cawkell, for the plaintiff;

A.Z. Breitman, for the defendants.

This case was heard at Edmonton, Alberta, before Purvis, J., of the Alberta Court of Queen's Bench, Judicial District of Edmonton, who delivered the following judgment on October 31, 1984: