1992 Personal Decision by K3h4V4AR

VIEWS: 0 PAGES: 8

									                                                                      B u rn a b y Re g ist r y
                                                                      No s . 1 6 2 9 7 t o 1 6 30 3
               I N T HE PR OVI NCI A L C O URT OF BR ITIS H C O LUM BIA
B ETW EE N:
          GREEN TREE VILLAGE COMMUNITY CENTRE ASSOCIATION
                                                                                     C LA IM ANT S
AND:
                ANTHEA BUSSEY AND EDWIN BUSSEY
                       SHARON ANNETTE SMITH
                HEBERT HABERL AND SHELLEY HABERL
                  ROBERT MORRIS AND MARY MORRIS
              JAMES GLADSTONE AND LYNNE GLADSTONE
           RONALD PAUL CHURCHILL AND TERRI EILEEN CHURCHILL
                J AM ES GAL LI SON AN D JU DITH GA LLIS ON
                                                                                   D EF ENDANT S
BEFORE HER HONOUR                                   M AR CH 1 6 , 19 9 2

J UD GE D ONN A J . M ART I NS ON


C ou ns e l:

Jamie A. Bleay appeared on behalf of the Claimants

E a ch De fe n da n t ap p ea re d on h is o r h er ow n be h a lf


                                   R EAS ON S FO R JUD GM EN T
The Notice of Claim with respect to each of these actions asks fo r
J u dg me nt as o f M a y 3 1 , 19 9 1 an d ac cr u in g a t $ 2 4 .0 0 e ac h m on th
t he re a f ter , be in g a r re a rs " a t m on th ly - co n tr ib u t io n " to th e ope r a t io n
o f Gre en T ree V ill a g e Co m mu n it y Ce nt re A sso c ia t ion " p u rs ua n t to a
R es tr ic t iv e Co ve na n t r eg is te re d a g ain s t t he lan d s a nd p re m ise s o f
t he De fen d an ts , an d b in d in g o n t he De fe n da n ts a n d ea c h of t he ir
h e ir s , as s ig ns a n d s ucc ess or s" .
I t w as ag re ed at th e be g in n in g o f the tr ia l t h a t the C la im a n t , G re en
T ree V illa g e C omm u n it y Cen t re As so c ia t ion wou ld p res en t its
e v id en ce a g a ins t a ll o f t he D ef en dan t s f ir s t , a nd t hen e ac h
De fe n da n t wo u ld p r ese nt h is o r he r c ase .
T he o r ig in a l de ve lo pe r o f t he s t ra t a lo t s a n d s in g le fam ily u n it s w as
D ao n De ve lo pm ent Co r po ra t io n (Dao n) . Th e ev id e nce d is c lose d th a t
a ll o f t he D ef en dan t s a re o wne rs of s in g le f am ily d w e llin g s in t h e
G r een T ree V il la g e c om p le x . The De fe nd a nt s a re not o r ig in a l o wn er s.
          A g ree me nt s s ig ned in 1 9 7 5 be twe en D aon a nd e ac h o rig in a l
          o wn er o f the s in g le fa m ily d w e llin g s in q ue s t io n co n tain e d th e
          f o llo w in g c la uses : (S ee E x h ib it 1 , a r e pre se nt a t ive
          a g ree me n t)
E.        T he Pa r t ies he re to h a ve ag ree d th at, in o r der to pr ov id e
          r ec re at io n a l be ne fit s a n d f ac ilit ie s fo r t he e nj o y me nt a n d u se o f
          e ac h o f t he o wne rs o f th e Res id en t ia l L a n ds an d in o rd e r to
          m a ke a va ila b le t he ben e f its an d fa cil it ie s o f the Co mm u n it y
          C en t re to ea ch o f t he ow ne rs o f t he R es ide n t ia l L a nd s , t o
          e xe cu te th is ag ree me nt o n the te rm s an d co n d it io n s h er e in se t
          f o rt h , a n d
F . 1)       D ao n w ill c a u se a b o dy co rpo r a te t he ": asso c ia t ion ") to be
          f o rm ed , e it h er pu rs u an t t o t he C om pa n ie s Ac t of Br it is h
          C o lu m b ia o r t he So c iet ies Ac t of Br it is h Co lu m b ia , o r p u rs u an t
          t o s uc h ot he r Ac t o r leg is la t io n as m a y be a v a ila b le f r o m t im e t o
          t im e in t he Pro v in c e of Br it is h Co lum b ia f or t he f or ma t io n o f a
          b o dy co rpo r a te , for t he pu r pose s of a c qu ir in g f ro m D ao n f or th e
          s u m o f O ne ( $ 1 .00 ) , the s a id la n ds a n d C om m un it y Ce nt re , fo r
          t he use e nj o y me nt a nd be ne f it o f the o wn er o f the Res id e nt ia l
          L a n ds .
     2)      T he p ro po r t ion a te s ha re o f c os ts s ha ll b e d ete r m ine d b y t a k in g
          in t o acc ou n t t he nu m be r o f s tr a ta lot s an d s in g le fa m ily u n it s
          c om p r ise d in t he d e ve lo pm en t on th e Res id e nt ia l L a nd s . Th e
          p r op or t io na te s har e o f cos t s w h ich t he ow ne r sh a ll b ea r s h a ll b e
          e qu a l t o one o v er t he to t a l nu m be r o f s t ra t a lo ts an d s in g le
          f a m ily u n it s c om pr is e d in t he de ve lo p men t o n t he Res id e nt ia l
          L a n ds a s a re me mb e rs fro m t ime to t im e . P ro v ide d how e ve r,
          t h a t u nt il s u c h t im e a s Da on ha s co m p let ed de ve lo pm e nt o f the
          R es ide n t ia l L a nd s t he sh a re .o f t he O w ne r s ha ll b e 1/4 1 7 of t he
          c os t of ope r at in g , a d m in is te r in g a nd m a in t a in in g t he C o mm u n it y
          C en t re a n d t he s a id la n d s w h ich c os ts a re he re in mo re
          s pe c if ic a lly d e f ined . P ro v id ed ho we ve r , t h at th e de nom in a t or o f
          t he p ro po rt io na te s h are m a y be v ar ie d fro m t ime to t im e b y
          D ao n , t he d eno m in a to r b e in g b ase d u po n t h at nu m ber o f st r at a
          lo t s a n d s in g le fam ily u n it s a s a re m e mb er s a t t he re le v an t
          t im e , an d the an t ic ip a te d o r a ct u a l n u m be r of st r at a lo ts an d
          s in g le f am ily u n it s t o be de ve l o pe d o n t he Re s ide n t ia l L a nd s .
     6)       T h e O wn er ag re es to beco me a m em b er o f th e Asso cia t io n ,
          u p on the te r ms a nd co nd it io n s he re in ex p res se d a nd to do a ll
          s uc h t h in gs an d to e xe cu te a ll s uc h a ss ur a nce s as m ay b e
          r e qu ir e d to pa r t ic ip a te in t he us e , en j o y men t a n d be ne f it s o f
          t he Co m mu n it y Cen t re , an d w it h resp ec t t o be a r in g its
          p r op or t io na te s har e o f t he co st s t he reo f .
     1 5 ) No t w it hs ta n d in g an y t h in g co nt a in ed in t h is A g ree me nt , it is
         t he in t en t ion o f the pa r t ies h er eto , a n d o f t h is A gr eem e nt to
         No t w it hs ta n d in g an y t h in g c o nt a in ed in t h is A g ree me nt , it is t he
       in t e n t ion o f t he pa r t ies he re to , a nd o f t h is A g ree ment to
       p r ov id e a sc he me o r m ec ha n is m w he re b y t he o wne rs o f the
       s t ra t a lot s a nd the s in g le f am ily u n it s , fr om t ime to t im e , s ha ll
       b e r eq u ir ed to p ay a p rop or t io na te s h a re of th e cos ts, c ha r ges
       a n d e xp en ses o f m a in t a in in g , o pe ra t in g an d ad m in ist e r in g t he
       C o mm u n it y Ce n tr e a n d t he s a id la n ds , an d th at t h is cha r ge be
       p a sse d o n to an d b e m a de b in d in g up o n a ll' su bs eq uen t o w ner s
       o f the sa id st r a ta lo t s a n d s in g le fam ily u n it s . . . .
   17)       T he O w ne r sh a ll c a u se a n y P u rc ha se r o f t he Ow ne r's L a n d
     t o e xec u te a n a g ree me n t w he reb y su c h p ur ch ase r s h all b e c o me
     b o un d b y the te rm s o f t h is ag ree me nt a nd ag ree s t ha t th e sa le
     o f the O wne r' s L an d s sh a ll n o t b e co m p let ed un t il s uch
     a g ree me n t in a for m sa t is fa c tor y to D aon h as b een ex ec u te d .
I n t he c ase o f e ach De fen d an t , a doc u men t e nt it le d "R es tr ic t iv e
C o ven a nt " w as s ign ed b y t he o r ig in al o w ne r . It is re g is te re d a g a ins t
t he t it le . T ha t co ve n an t inc lu de s t hes e p ro v is io ns: (S ee E x h ib it 2 , a
r e pre se nt a t ive cov e na n t)
        AN D T H E GR ANT EE FU RTH ER C OV ENANT S AND A GR EES WI TH
        T HE GRANT OR T HAT
        ( a)   t he G ra n tee w il l b e co me a nd re m a in a me m be r in go od
                s t an d in g o f s uc h as soc ia t io n o r or g an is a t io n as m ay , fr o m
                t im e to t ime e x is t a n d be re spo ns ib l e fo r t he
                m a in t en an ce , o pe r a t io n a nd m an a ge me nt o f th e f ac ili t ie s
                lo c a te d on the G ra n to rs' La n ds .
        ( b)   t he G ra n tee w il l p a y h is p ro po r t ion at e s ha re o f the cos ts
                in c u r re d b y o r on b eh a lf o f t he ow ne r o f t he Gr an to rs'
                L a n ds for e ac h f isc a l pe r io d a do p ted b y the sa id ow ne r ,
                a n d o n a mon t h l y o r in te r im ba s is as suc h o wne r ma y
                d e te rm in e , w h ich a r e p ro pe r ly at t r ib u t ab le in ac cor d an ce
                w it h ge ne ra lly a c ce p ted ac cou n t in g p r ac t ice to the
                o pe ra t io n , co nt ro l a n d m a in te na nc e o f the f ac ilit ie s and
                o t her im p ro ve me nt s w h ic h m a y , f rom t im e t o t im e b e
                e re c te d , ma in t a ine d a n d op er a te d up o n t he G r an to rs'
                la n d s s uc h p ro po rt io n a te s ha re to be th a t a mo un t a s is
                d e te rm in ed b y t he o wne r o f the Gr an t or s' L an ds f ro m t im e
                t o t im e .
        ( c)   n o t to s e ll, a ss ig n o r t r an sf er th e said la n d s w it ho ut
                c a us in g t he pu rc ha se r , a ss ig nee , o r t r an s fe ree t he reof t o
                e nt er in to a n a gr ee me nt w it h t he ow ne r o f t he s a id la n ds
                c on t a in in g co ve n an t s su bs t an t ia lly i n t he for m c on t a in ed
                h er e in .
        O n D ece m ber 2 3 , 1 9 7 7 D ao n a ss ig ne d its in t ere st in th e
A g ree me nt s re fe r re d t o a bo ve to t he C la im a n t s. T he C la im a n ts
p r ep a re d a s t an dar d as su m pt io n a g ree me n t b y w h ic h s u bse qu en t
p u rc h ase rs ag ree t o b e bo u nd b y t he te rm s o f t he co ve na n ts . (s ee
E x h ib it 4 ) T he D efe nd a nt s h a ve no t s ig n ed ass u mp t ion a gr ee men ts .
T he s ta n da r d a g ree me nt p ro v ide s t ha t :
       2.      T he L a nd s a re e ncu m be re d b y a re str ic t iv e c ov en a nt
               r e g ist ere d in th e Ne w We st m in st er L a n d Re g ist r y O f f ic e on
               t he 4 th d ay o f J u ly , 1 9 7 5 . . .
       3.      T he d oc ume n t e mb o dy in g t he r es tr ic t iv e co ve na n t con t a in s
                c er t a in co ve n an ts o n t he pa r t o f t he G r an te e t he re in
                n a me d t o be o bs er v ed a n d pe rf or me d , a ll o f w h ich
                c ov en an ts , bo th po s it iv e a n d ne ga t iv e , a re he re in c a lle d
                t he " Co ven a nt s" .
       4.      T he O w ne rs [s ic ] h a s en te re d in t o a co n tr ac t ( th e
                " Co n tr ac t ") w it h Da on D e ve lop me n t C o rpo r a t io n ( "D aon ")
                r e ga r d in g t he prov is io n a nd pa y men t fo r t he use o f
                r ec re at io n a l f ac ilit ie s o n t he rec re a t io na l p r op er t y a c op y
                o f w h ic h co nt r ac t is a t t ac hed he re to.
       5.      I n a n a g ree me nt d a te d t he 2 3r d day o f Dece m be r , 1 97 7 ,
                D ao n as s ig ne d , t ra n sf er re d a n d se t o ve r t o GT VC CA a ll o f
                it s r ig h ts , t it le and in t er es t , bo t h leg a l a n d e qu it a b le ,
                u n de r , to a nd in th e co nt r ac t .
       6.       T he p u rc ha se r h as a g ree d t o be co me bo un d b y the ter m s
                o f the con t ra ct and t he co ve n an ts .
         C ou ns e l fo r t he C la im a n ts re lie d u po n t he dec is io n o f G re en
T ree V illa g e C omm u n it y Cen t re v . T he O w ne rs , S tr a ta P la n N .W . 1 9 4
e t . a l. , B . C .S .C . , Ja n ua r y 3 , 1 9 8 0 , (U n re po r ted , V a nco u ve r Re g ist r y
No 's . C 7 8 5 1 6 , C 78 5 1 8 8 , C 78 5 1 8 9) . I n t ha t dec is io n , M cK a y J . de a lt
w it h a g ree men ts b e twe en Gr een T ree V il la g e an d f ive S t ra t a
C o rpo r a t io ns s ig ne d b et wee n 19 7 4 a n d 19 7 6 . T he A gr ee d S ta te me nt
o f F ac ts des cr ib e d t he A g ree me nt s th is w a y a t p . 7:
       2 6 . B y ea ch o f the NW 1 9 4 , NW 2 0 8 , NW 3 1 0 , NW 4 4 0 AN D NW
               6 0 3 Ag ree me n ts ( h er e in co lle c t iv e ly c a lle d the
               " a g ree me nt s" ), t he res pec t iv e s t ra ta co rp or a t ion s d id
               c ov en an t an d a g ree in te r a lia , w it h D ao n t o p ay to D ao n
               in e q ua l m on t h ly in s ta lm e nt s on th e 1 s t d a y o f ea ch an d
               e ve r y m on th t hrou g ho ut e ac h f isc a l p er io d ado p te d by
               D ao n , a s ha re o f a ll c o s ts p ro pe r ly a t t r ib u ta b le in
               a cc or d an ce w it h ge ne ra lly a c ce pt ed a cc ou nt in g p ra ct ice ,
               t o t he o pe r at io n , c on t ro l a nd ma in t e na nc e of t he
               C o mm u n it y Ce n tr e a s d ef in e d in t he s a id A g ree me n ts .
So me b ut no t a ll o f the st r at a lot s in t he p la n s ow ne d b y th e St r at a
C o rpo r a t io ns we re o wne d by t he o r ig in a l o w ne rs . In 19 7 7 a nd 1 9 7 8
e ac h o f t he De fe nd a n t St r at a Cor por a t io ns p as s e d re so lu t io ns
e x pr ess in g th e ir de s ire to t er m in a te t h at a gr eem en t an d p ro v id in g an
e f fec t iv e d a te for t he te r m in at io n . Gr ee n Tre e V illa g e r ej e cte d the
t e rm in a t io n . T he De fe n da n t Co r po ra t io ns s to p pe d p ay in g t he
o pe ra t in g c os ts .
       T he P la in t if f s in th a t c ase ar g ue d th a t t he ag ree me nt s w er e
p e rm a nen t . M cK a y J . s a id at p . 14 :
         I t is t he pos it io n o f the p la in t if f t hat t he co m mu n it y ce nt re
         a g ree me n ts (e x h ib it s 1 0 , 1 2 a nd 1 4) ar e pe r ma ne nt an d we re
         s o in t en de d a n d th e de f en da n ts h a ve no r ig h t o f t er min a t io n in
         t he a bse nce o f bre ac h . I a g ree w it h t h at su b m iss io n an d s o
         n ee d no t dea l w it h t he a lt e rn a te s ub m is s ion .
H e f u rt he r s a id a t p . 1 9:
         . . . U n de r t he co n tra c ts the in d iv id u a l o wne rs a re o b lig at e d to
         p a y a f ix e d pe rc en t a ge o f t he o pe ra t in g cos ts . T he sh a re is
         d e te rm in e d b y t a kin g in t o acco u nt th e n u mbe r o f s t rat a lo ts
         c om p r ise d in t he fiv e s tr a ta c or po r at io n s to ge t her w ith t hose
         o wn er s o f t he s ing le f a m ily d we llin g s w ho e le ct to bec om e
         m e mb er s . .. .
H e t he n se t ou t pa r ts o f th e co nt r ac t in c lu d in g t he follo w in g a t p . 22 :
         8 . T he Co r por a t ion sh a ll p a y to D aon it s pr op or t io na te s h are as
                a b ov e de te r m ine d, f or e ac h f isc a l pe r io d a do pt ed b y D ao n ,
                w h ic h co st s f or the pu r pose of th e A g ree me nt s h a ll m e an
                a ll c o s ts p ro pe r ly a t t r ib u ta b le in a cco r da nce w it h
                g en er a lly a cc ep ted ac co un t in g pr act ic e , t o t he o pe ra tio n ,
                c on t ro l a nd ma in t e na nc e of t he Com m u n it y C en t re . . .
         1 1 . Da on c ov en ant s an d a g rees t ha t so lo ng as it sh a ll b e
                o wn er o f the Co mm u n it y Cen t re , t ha t :
                 ( b) it w ill n o t re vo ke th is Ag ree men t e xc ep t as he re in
                        p r ov id e d .
M cK a y J . t he n s a id a t p p . 2 3 - 4:
. . . U n de r t he a ss ig n m en t f ro m D ao n t o t he p la in t if f (ex h ib it 1 7 ) the
o b lig a t io ns o f D aon u nde r th e v a r iou s co m mu n it y c ent r e co nt r ac ts
w e re as su me d by t he p la in t if f . So we ha ve a s it u at io n w he re the
p la in t if f a s soc ia t ion , b y a ss um in g t he o b l ig a t io ns o f Da on , is no t
p e rm it t ed to te rm in a te . W as it in te nd e d t ha t w h ile one pa r t y to th e
c on t ra ct c ou ld no t t er m in a te the o t he r co u ld ? I t h in k n o t. T he who le
t en or o f th e co nt ra c t is one o f pe rma ne nc y an d I a m j u s t u na b le t o
r e ad it a ny o t he r w a y . W it h o u t pe rm a ne nc y it ma ke s n o b us in ess
s ens e as h as b een d em on st r at ed b y t he a tt em p te d w ith d r aw a ls o f t he
d e fen d an ts - t he p la in t if f h a s b een f o rce d t o c lose the c om m un it y
c en t re .
T he m a in a rg u men t s a d va nce d o n be ha lf o f t he De fe nd a n ts a re th a t:
1.      t he ca se r e li e d u po n b y the C la im a nt s is d is t in g u is ha ble in t h a t
     it d e a lt w it h s tr a ta co rp or a t ion s , not s in g le f a m ily d we llin g s .
     U n lik e t he De fe n da n ts in t ha t c ase , t he De fen d an ts in t h is c as e
     h a ve no t en te re d in t o a co n tr ac t w it h t he C la im a n ts .
2.       t he co ve na nt in qu es t io n is a po s it iv e co ve n an t , n ot a ne g at iv e
     c ov en an t , an d t her e fo re d oes not r un w it h the la n d .
I s t he d ec is io n in G r een T ree V il la g e s u pr a d ist in g u ish a b le?
I n m y v iew it is . T h a t c ase de a lt w it h st r a ta c or po r at io ns an d t ho se
c or po r at io ns e nt ere d in to co n tr a c ts w it h t he C la im a n ts . Her e ,
b ec au se the D ef end a n ts d id n ot s ig n a ss um p t ion a gr eem e nt s , t he re is
n o co n tr ac tu a l r e la t io ns h ip be twe en t he C la im a n t a nd a n y o f t he
De fe n da n ts .
T he Na t ur e o f t he C o ven a nt
I n R .E . M e g ar r y an d H .W .R . W ad e, T he L a w of Rea l P r o pe r t y , Fo u rt h
E d it io n , S te ve ns an d S on s L td . , Lond o n, En g la n d , 1 9 5, r es tr ic t iv e
c ov en an ts a re d esc r ib ed p . 75 4:
1 . The co ven a nt m u st be neg a t iv e in n a t ur e
                ( a) Ne g at iv it y . A f te r a fe w c ases in w h ic h t he c ou r t wa s
                p r ep a re d to e n fo rc e a pos it iv e c o ven a n t, t he r u le w as
                s et t le d in 1 8 8 1 tha t o n ly a n eg a t ive co ve n an t w ou ld be
                e n fo rce d b y e qu it y . (H a yw ood v B r un sw ic k Pe r ma ne nt
                B ene f it B .S . ( 1 8 81 ) 8 Q . B .D . 4 0 3] .T he e qu it a b le in ter es t
                c re a ted b y t he c ov e na n t is one p r im a r ily e n fo rce a b le b y
                in j u nc t ion , an d wh er ea s a neg a t iv e in j un c t io n res t ra in in g
                t he co mm is s ion o r co n t in ua nce o f s pe c if ie d a ct s no r mally
                p r ese nt s no d if f icu lt ie s o f e n fo rce me nt , e q u it y h as lon g
                b ee n ch a r y [s ic] of m a k in g o rd er s to pe rf or m a se r ies o f
                a c ts req u ir in g su pe r v is ion , s ee J ac ks on v . No rm a nb y B r ic k
                C o . [ 1 89 9] 1 Ch . 4 3 8 , ev en tho u gh it h a s t he nece ss ar y
                j ur is d ic t io n to decr ee s pec if ic p e rf orm a nc e or gr a nt a
                m a n da to r y inj un ctio n , or de r in g s pecif ie d a c ts to be don e .
                T he d oc tr in e is con f in e d to ne ga t iv e co ve n an ts bec a use
                e f fec t c an be g iven to th ese "b y mea n s of t he la nd it se lf " .
                R e N is be t & Po tt s' Con t ra c t [1 9 0 5] 1 C h . 3 9 1 at 3 9 7 , p e r
                F a rwe ll J . .
                ( b) S ub s ta nce . T he que s t ion is w he th er t he co ve na n t is
                n eg a t iv e in n a tu re: it is im m a te r ia l w he t he r t he w or d in g
                is p os it iv e o r nega t iv e . T hus t he cov e na n t in Tu lk v .
                M o xh a v , ( 1 8 48 ) 2 P h . 7 7 4 , w as pos it iv e in wo r d in g (to
                m a in t a in t he Le ic es te r S qu a re G a rd en " in an o pe n s ta te ,
                u n co ver ed w it h a ny b u ild in g s ") bu t n eg a t iv e in n a tu re, f or
                it m e re ly bo u nd th e co ve na n to r to r e fr a in f ro m b u ild i n g ,
                w it h ou t re qu ir in g h im t o d o a ny po sit iv e a c t . A te st wh ic h
                is o f ten a pp lie d is w he t her t he co ven a n t re q u ire s
                e x pe nd it u re o f mon e y fo r it s pe r fo rm a nc e: if the co ve na n t
                r e qu ir es the co ven a n tor " to p u t h is h a nd in to h is p ock e t"
                it is n o t ne g at iv e in n a t ur e . Ha y wood Br u ns w ic k
                P e r ma ne nt B ene f it , A . C. , su p ra . at 40 9 , 4 1 0 .
I n G . H . New so m , " Re st r ic t ive Co ve na n ts A f fe ct in g F ree ho ld L an d"
Se ve n th Ed it io n , S wee t a n d M a xw e ll, L o n don , En g la nd , 1 9 8 2 , t he
a u t hor st a tes at p. 7 4 :
       B u rd en o f pos it iv e co ve n an ts doe s no t r u n w it h the la n d
       I t fo ll o ws th a t t he b u r den o f a po s itiv e co ve na n t ne ver r un s
       w it h t he la nd e it he r a t co m mo n la w o r in e qu it y . T hus , F a rw e ll
       J . , de liv e r in g the j ud g me nt o f th e Co u rt o f A p pea l in Z et la n d v .
       D r iv er , [ 1 9 3 9] C h. 1 a t p . 8 , s a id: "No a ff ir m a t iv e co ve na n t
       r e qu ir in g t he e x pen d it u re o f mon ey o r t he do in g o f som e a ct ca n
       e ve r b e m a de to ru n w it h t he la nd . " A n d in H a lls a ll v . B r iz e ll,
       [ 1 9 5 7] C h . 1 6 9 at p . 1 8 2 , U pj o h n J . s a id: "A pos it iv e c ov en an t
       ..       d oes no t r u n w it h t he la n d . "
Ne ws on a lso co ns id e rs t he qu es t ion o f n eg a t iv i t y a t pp . 7 6 - 7 o f the
t e xt :
        C o ven a nt s m a y be r es tr ic t iv e o f t he u se r o f lan d e x pr es s ly o r
        b y im p lic a t io n . T he que s t ion is n ot w he t he r a co ve n an t is
        n eg a t iv e in wo r d in g , bu t w he t her it is ne g a t ive in sub s ta nc e" ,
        S he ph er d Ho me s L t d . v . Sa n dh a m (No . 2) [ 1 9 7 1] 1 W. L . R . 1 0 6 2
        p e r M e g ar r y J . a t p . 1 0 6 7: a co ve nan t s im p ly r e qu ir in g a
        p os it iv e ac t by the pa r t y bo u nd c a nn o t be res t r ict iv e , a n d w ill
        n o t b in d the la n d . A me re co ve na n t t o p a y o r e xpe n d m o ne y is
        t he c lea res t e x amp le of one wh ic h fo r t h is rea so n f a ils to b in d
        t he la n d , see fo r e x am p ie , G re en halg h v . B r in d ley [ 19 0 1 ] 2 Ch .
        3 2 4 : " fo r the la n d c an no t s pe nd mon e y on im p ro v in g it s e lf " . Re
        N is be t a n d Po t ts' C on t ra c t , [ 1 9 0 5] 1 C h . 3 9 1 at p . 3 97 . . . .
         I n P a r k ins on e t . al. v . R e id [ 1 9 6 6] S . C .R . 1 62 , 5 6 D .L . R , ( 2d )
3 1 5 , t he Su p re me C ou r t of C an ad a d e a lt w it h a co ve na n t t o re p a ir
a n d r eco ns t ru ct a s t a ir wa y c on t a ined in a g ra nt o f a rig h t o f w ay
o ve r t he s t a ir wa y le a d in g to the seco n d f loo r o f a bu il d in g on th e
s er v ie nt te ne men t a dj o in in g t he bu il d in g on th e do m ina n t t ene me n t .
C a r tw r ig h t J . s peak in g f or t he m aj o rit y , s a id a t p . 1 67: (S . C .R .)
        T he r ea son s f or j ud g me n t of t he Cou r t o f A pp ea l w ere de liv e re d
        b y K e lly J .A . . A f ter re c it in g th e f ac ts he h e ld , ( i) t h at t he re wa s
        n o p r iv it y o f co nt ra c t be t wee n t he pla in t if f a n d t he d ef e nd a nt s ,
        ( ii) t h at th er e w as n o p r iv it y o f es tat e b et wee n t he m a n d , ( iii)
        t h a t t he co ve n an t t o r ep a ir an d recon s tr uc t the s t a ir wa y d id no t
        r u n w it h th e la n d . I a g ree w it h t he v ie w s o f t he lea r ne d J us t ice
        o f A pp ea l o n t hese th ree po in t s. T he y do no t re qu ir e
        e la bo r a t ion . As to t he th ir d po in t the la w is a cc ur a te ly a n d
        s uc c inc t ly st a te in G a le o n E ase me nt s , 1 2t h e d. a t p . 7 7 a s
        f o llo w s:
                  T he r u le in T u lk v . M o xh a y d oes n ot e x te nd to a f f ir m a tiv e
                  c ov en an ts re qu ir i n g th e ex pe n d it ure o f mon ey o r th e
                  d o in g o f so m e ac t. S uc h co ve na nt s d o n ot ru n w it h t he
                  la n d w he the r at law or in eq u it y . The doc t r ine o n ly a pp lie s
                  t o co ve n an ts wh ich a re n eg a t ive in s u bs ta nce t hou g h t he y
                  m a y be p os it iv e in f o rm .
T he co ve n an ts in t h is ca se re q u ire th e g r an tee to beco me an d r em a in
a me m be r in g oo d s t an d in g , t o p a y a p ro po rt io n at e sha r e of t he
c os ts , a n d to ca use an y pu rc ha se r to e n ter in t o a n a gr ee me nt w it h
t he ow ne r of t he la n d co n ta in in g cov e na n ts s ub st a nt ia lly in t he fo r m
c on t a ine d in t he ag r ee men t .
I am o f th e v ie w th a t t he se co ve na nt s are pos it iv e cov e na n ts . Th ey
t he re fo re do n ot ru n w it h t he la nd . Se ct io n 2 17 o f th e L a nd T it le s
A ct , R . S B .C . , C . 2 1 9 p ro v id es t h at:
        ( 1) T he r eg is t r ar s h a ll n ot re g is te r a re st r ic t iv e co ven a n t u n le ss
        ( a)      t he ob lig a t io n th at t he co ve n an t p ur p or ts to c re a te is, in
                  h is op in io n , ne ga tiv e o r re st r ic t iv e;
        ( b)   t he la n d to w h ich t he be ne f it o f the c ov en an t is a n ne xe d
                a n d t he la n d su bj e ct to the bu r de n o f the co ven a nt are
                b o th s a t is fa ct or ily d esc r ib ed in t he in s tr u men t c re a t ing
                t he co ve na nt , an d
                  ( c) t he t it le to the la n d a f f ec te d is re g is te re d u n der t h is
                  A ct .
        ( 2) T he r eg is t r at io n o f a res t r ict iv e co ve n an t is no t a
        d e te rm in a t ion b y t he re g is tr a r o f it s e sse n t ia l n at u re o r
        e n fo rce ab il it y .
C on c lus io n
I n s um m ar y , the C o ven a nt s do no t r u n w it h th e la n d a n d t he re is n o
c on t ra ct be twe en t he C la im a n t a nd a n y o f t he De fe n da n ts . T he re is
t he re fo re no b as is u po n w h ic h a n y of t he De fe n da n ts ca n be r eq u ir ed
t o p a y . I n v ie w of t h is c on c lus io n , it is no t n eces sa r y f o r me to dea l
w it h t he o the r ar gu m en ts ra is ed b y t he De fen d an ts .
A ll o f t he c la im s ar e d is m is se d . T her e w il l b e no co st s.




                                                         Do n na J . M ar t in son
                                                         P r o v inc ia l C o ur t Ju d ge
                                                         May 28, 1992

								
To top