TransactionsCourt Confirms Availability of Certificates of Pending Litigation for Development and Investment PropertiesPublished: 06/21/2011 In a decision released by the Ontario Superior Court of Justice on June 20, 2011, the court has confirmed that purchasers who enter into agreements to buy commercial properties for development and investment purposes may be able to obtain a Certificate of Pending Litigation on title to such properties in case of pending litigation with the seller. In the past, there has been some resistance to granting Certificates of Pending Litigation on development or investment properties, primarily on the basis that damage claims for those properties provide sufficient relief for the putative purchaser such that it is unnecessary to enjoin the seller from disposing of the land to third parties pending trial. However, and as reflected in the decision of 2144688 Ontario Ltd. v. 1482241 Ontario Ltd., the court granted the purchaser leave to register a Certificate of Pending Litigation against title to an eight-storey commercial building which had unique views and unique prospects for development and conversion into a specific condominium project envisioned by the purchaser. Robert B. Cohen of the Cassels Brock Advocacy Department acts for the purchaser in this case. |