McLean Estate v. McLean, (2013) 313 O.A.C. 364 (CA)

• Judge: Weiler, Rouleau and Pepall, JJ.A.
• Court: Court of Appeal (Ontario)
• Case Date: September 12, 2013
• Jurisdiction: Ontario
• Citations: (2013), 313 O.A.C. 364 (CA);2013 ONCA 788

McLean Estate v. McLean (2013), 313 O.A.C. 364 (CA)

MLB headnote and full text

Temp. Cite: [2014] O.A.C. TBEd. JA.004

Helen Gertrude McLean, in her personal capacity and as executrix of the Estate of Wilmur Russell McLean, deceased (plaintiff/appellant) v. Melville Kenneth McLean and Maureen Holly McLean (defendants/ respondent )

Maureen Holly McLean (plaintiff by counterclaim) v. Helen Gertrude McLean, in her personal capacity and as executrix of the Estate of Wilmur Russell McLean, deceased and Trudy McLean (defendants by counterclaim)

(C56293; 2013 ONCA 788)

Indexed As: McLean Estate v. McLean

Ontario Court of Appeal

Weiler, Rouleau and Pepall, JJ.A.

December 27, 2013.

Summary:

A vendor sought rectification of a memorandum of agreement respecting the purchase price of the subject real property, which would result in a change to the amount of a take back mortgage.

The Ontario Superior Court dismissed the rectification claim. The vendor appealed.

The Ontario Court of Appeal allowed the appeal.

Deeds and Documents - Topic 5059

Rectification - When available - Mistake - Common - [See Deeds and Documents - Topic 5181 ].

Deeds and Documents - Topic 5176

Rectification - Proof and evidence - General (incl. approach) - [See Deeds and Documents - Topic 5181 ].

Deeds and Documents - Topic 5181

Rectification - Proof and evidence - Standard of proof - A trial judge refused a vendor's request for rectification of a memorandum of agreement respecting the purchase price of real property - The vendor appealed - The Ontario Court of Appeal held that the trial judge erred in applying the standard of "convincing" proof, when the ordinary civil burden of proof on a balance of probabilities applied - Also, instead of relying almost exclusively on the testimony of one witness, the trial judge should have adopted an objective approach - Applying the ordinary civil standard of proof and considering the surrounding documentary and oral evidence as a whole, the requirements for rectification based on common mistake were met - The parties had a common intention to enter into a transaction for a total selling price at fair market value, the fair market value was clear, and the fair market value was incorrectly expressed in the documentation - Unless rectification was granted, the purchaser would be unjustly enriched - See paragraphs 9 to 82.

Equity - Topic 1108

Equitable relief - Contracts - Rectification - [See Deeds and Documents - Topic 5181 ].

Mistake - Topic 4005

Relief - Circumstances when granted - [See Deeds and Documents - Topic 5181 ].

Cases Noticed:

Royal Bank of Canada v. El-Bris Ltd., [2008] O.A.C. Uned. 749; 92 O.R.(3d) 779; 2008 ONCA 601, refd to. [para. 5].

Spencer et al. v. Salo et al. (2013), 303 O.A.C. 374; 114 O.R.(3d) 226; 2013 ONCA 98, refd to. [para. 8].

Durrani v. Augier et al., [2000] O.T.C. 607; 50 O.R.(3d) 353 (Sup. Ct.), refd to. [para. 8].

Sylvan Lake Golf & Tennis Club Ltd. v. Performance Industries Ltd. and O'Connor (No. 2), [2002] 1 S.C.R. 678; 283 N.R. 233; 299 A.R. 201; 266 W.A.C. 201; 2002 SCC 19, not appld. [para. 39].

F.H. v. McDougall, [2008] 3 S.C.R. 41; 380 N.R. 82; 260 B.C.A.C. 74; 439 W.A.C. 74; 2008 SCC 53, appld. [para. 40].

Wasauksing First Nation et al. v. Wasausink Lands Inc. et al., [2004] 2 C.N.L.R. 355; 184 O.A.C. 84; 43 B.L.R.(3d) 244 (C.A.), refd to. [para. 44].

Penner v. Niagara Regional Police Services Board et al. (2013), 442 N.R. 140; 304 O.A.C. 106; 356 D.L.R.(4th) 595; 2013 SCC 19, refd to. [para. 44].

Soulos v. Korkontzilas et al. (1995), 84 O.A.C. 390; 25 O.R. (3d) 257 (C.A.), affd. [1997] 2 S.C.R. 217; 212 N.R. 1; 100 O.A.C. 241, refd to. [para. 44].

Swainland Builders v. Freehold Properties Ltd., [2002] EWCA Civ 560; [2002] 2 E.G.L.R. 71, refd to. [para. 45].

Chartbrook Ltd. v. Persimmon Homes Ltd. et al., [2009] UKHL 38; 398 N.R. 201; [2009] 1 A.C. 1101 (H.L.), refd to. [para. 45].

Housen v. Nikolaisen et al., [2002] 2 S.C.R. 235; 286 N.R. 1; 219 Sask.R. 1; 272 W.A.C. 1; 2002 SCC 33, refd to. [para. 52, footnote 3].

H.L. v. Canada (Attorney General) et al., [2005] 1 S.C.R. 401; 333 N.R. 1; 262 Sask.R. 1; 347 W.A.C. 1; 2005 SCC 25, refd to. [para. 52, footnote 3].

UBS Securities Canada Inc. v. Sands Brothers Canada Ltd. (2009), 248 O.A.C. 146; 95 O.R.(3d) 93; 2009 ONCA 328, refd to. [para. 54].

Ghitter (Ron) Property Consultants Ltd. v. Beaver Lumber Co. (2003), 330 A.R. 353; 299 W.A.C. 353; 2003 ABCA 221, refd to. [para. 54].

Downey v. Ecore International Inc. (2012), 294 O.A.C. 200; 2010 ONCA 480, refd to. [para. 54].

Salah et al. v. Timothy's Coffees of the World Inc. (2010), 268 O.A.C. 279; 2010 ONCA 673, refd to. [para. 54].

KRG Insurance Brokers (Western) Inc. v. Shafron et al., [2009] 1 S.C.R. 157; 383 N.R. 217; 265 B.C.A.C. 1; 446 W.A.C. 1; 2009 SCC 6, refd to. [para. 58].

Lee v. 1435375 Ontario Ltd. (2013), 310 O.A.C. 187; 2013 ONCA 516, refd to. [para. 69].

Downtown King West Development Corp. v. Massey Ferguson Industries Ltd. (1996), 89 O.A.C. 373; 28 O.R.(3d) 327; 133 D.L.R.(4th) 550 (C.A.), refd to. [para. 71, footnote 6].

Regal Constellation Hotel Ltd. (Receivership), Re (2004), 188 O.A.C. 97; 71 O.R.(3d) 355 (C.A.), refd to. [para. 80].

Statutes Noticed:

Land Titles Act, R.S.O. 1990, c. L-5, sect. 160 [para. 7].

Authors and Works Noticed:

Fridman, Gerald, Law of Contract in Canada (6th Ed. 2011), p. 252 [para. 69].

Snell, Equity (32nd Ed. 2010), para. 16-001 [para. 5].

Waddams, S.M., The Law of Contracts (5th Ed.), p. 105 [para. 54].

Counsel:

Avril A. Farlam, for the appellant;

Stephen F. Ault, for the respondent.

This appeal was heard on September 12, 2013, before Weiler, Rouleau and Pepall, JJ.A., of the Ontario Court of Appeal. The following decision was delivered for the court by Weiler, J.A., on December 27, 2013.