MacDonald and MacDonald v. Paterson Park Ltd., (1983) 42 A.R. 272 (QBM)

• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: January 21, 1983
• Citations: (1983), 42 A.R. 272 (QBM)

MacDonald v. Paterson Park Ltd. (1983), 42 A.R. 272 (QBM)

MLB headnote and full text

MacDonald and MacDonald v. Paterson Park Ltd.

Indexed As: MacDonald and MacDonald v. Paterson Park Ltd.

Alberta Court of Queen's Bench

Judicial District of Edmonton

Funduk, Master in Chambers

January 21, 1983.

Summary:

A purchaser, who agreed to buy seven quarter sections of land on speculation for $575,000, defaulted after paying $300,000 of the purchase price. The land had a market value of $277,000. The vendors applied for summary judgment, seeking a declaration that the agreement had been terminated, and that they were entitled to keep the $300,000 as liquidated damages, as agreed to in the contract. The Alberta Court of Queen's Bench allowed the application.

Contracts - Topic 4704

Discharge and termination - By notice - What constitutes notice of termination - A Master of the Alberta Court of Queen's Bench held that where a contract contained no provision for notice of termination of the contract, the commencement of an action on the contract was sufficient notice that the contract had been terminated - See paragraph 12.

Sale of Land - Topic 8903

Remedies of purchaser - Relief from forfeiture - When available - A purchaser, who agreed to buy seven quarter sections of land on speculation for $575,000, defaulted after paying $300,000 of the purchase price - The purchaser sought relief from forfeiture for part of its equitable interests in the land after the vendor terminated the contract - A Master of the Alberta Court of Queen's Bench held that since relief from forfeiture must be for all of the land, the Court could not give the purchaser a portion of the seven quarter sections - See paragraphs 16 to 18.

Contracts - Topic 4053

Remedies for breach - Liquidated damages and penalty - Forfeiture of deposit - Relief - A purchaser defaulted on a $305,000 balance owing on the purchase of land having a $277,000 market value - The vendor terminated the contract, seeking to keep the money paid as liquidated damages, as agreed to in the contract - A Master of the Alberta Court of Queen's Bench held that where land is worth less than the balance owed to the vendor there can be no relief from forfeiture, because it is not unconscionable for the vendor to retain the money as liquidated damages - See paragraphs 20 to 33.

Practice - Topic 5705

Judgments and orders - Summary judgments - Requirement that issue be beyond doubt - A Master of the Alberta Court of Queen's Bench held that an application to retain purchase monies paid under a contract as liquidated damages could not be decided summarily if there was a possibility that the retention of the money might be unconscionable - See paragraph 26.

Sale of Land - Topic 8906

Remedies of purchaser - Relief from forfeiture - Where contract terminated by purchaser's breach - A Master of the Alberta Court of Queen's Bench held that where a vendor terminated an agreement for purchase and sale, the purchaser could not be given time to "redeem" - The agreement was at an end and the purchaser's only remedy was relief from forfeiture - See paragraphs 52 to 54.

Cases Noticed:

Western Mack Truck (Edmonton) Ltd. v. Heikel, 1 Alta. L.R.(2d) 184, refd to. [para. 7].

Bonnyville Rental Equipment Ltd. v. 217646 Developments Ltd. (1983), 39 A.R. 155, refd to. [para. 12].

Coronado Developments Ltd. v. W.E.D. Developments Ltd. (1983), 42 A.R. 283, refd to. [paras. 22, 39].

World Land Ltd. v. Daon Development Corporation, 20 Alta. L.R.(2d) 33, dist. [paras. 22, 38].

March Brothers & Wells v. Banton, [1911] 1 W.W.R. 554, refd to. [para. 24].

Popyk v. Western Savings & Loan Association (1969), 67 W.W.R.(N.S.) 684; 3 D.L.R.(3d) 511, folld. [para. 26].

Halskov v. Shandruk, [1972] 4 W.W.R. 360, refd to. [para. 54].

Authors and Works Noticed:

Di Castri, The Law of Vendor and Purchaser (2nd Ed.), p. 604 [para. 39].

Kirkham, Agreements for Sale: Extending the Period of Redemption (1974), 32 Advocate 295 [para. 54].

Counsel:

M.J. Trussler, for the plaintiffs;

C.D. Holmes, for the defendant.

This case was heard at Edmonton, Alberta, before FUNDUK, MASTER IN CHAMBERS, of the Alberta Court of Queen's Bench, who delivered the following judgment on January 21, 1983: