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216 MANITOBA LAW JOURNAL |VOLUME 35 NUMBER 1 the PPSA will govern, meaning that one creditor is allowed to take advantage of the mistake of another. However, where there is more than mere knowledge of a pre-existing security interest, and one secured creditor has been led, by the other, “down the garden path”, through fraud or something akin to it, the statutory priority scheme will be ignored, so as to defeat the fraudulent intent of the misleading creditor. The more involved the misleading creditor is with the other, in causing the other person to become a creditor, the more likely it is that the courts will find the misleading creditor to be acting in bad faith, which will not be allowed.
A House Divided: Access to Partition and Sale under the Laws of Ontario and Manitoba J O H N I R V I N E * I. INTRODUCTION T his paper 1 examines some important questions concerning the law of partition, and of “sale in lieu of partition”, a substitute remedy which in most common law jurisdictions made its appearance in the law at a relatively late date. The writer has no ambition to cover the subject comprehensively. Rather, it is hoped that further essays in this journal will appear presently, to address issues deliberately set aside in this article. In particular, the all-important question of how judges use their discretion in this context is a topic which both deserves and needs close and separate treatment; so that all this article attempts on that topic, is to show how, again at a surprisingly recent date, the whole phenomenon of judicial discretion, with all its potential for flexible and sensible decision-making, finally entered the picture. My present aim is to draw attention to an interesting anomaly. Historically, Manitoba has often “borrowed” legislation from Ontario, its older and more populous neighbour, often with minimal adaptation. It did so in 1878, when it passed its first Partition Act, 2 essentially copying the then-current Ontario Act 3 almost word-for-word. While minor differences and amendments have crept in over the ensuing 133 years, and Manitoba’s Act has been subsumed into the eclectic or amorphous Law of Property Act, 4 the statutory provisions in both provinces, especially the core provisions which will be examined in this paper, remain recognizably and obviously the “same package”. Yet when we come to examine the functioning of these essentially identical provisions, as interpreted by * 1 2 3 4 Professor, Faculty of Law, University of Manitoba; Member, Manitoba Law Reform Commission. The second essay in a trio of interrelated offerings destined for the Journal. The first, found earlier in this issue and entitled “Unsettled Estates: Manitoba’s Forgotten Statute and the Chupryk Case”, addressed aspects of the province’s law regarding consecutive interests in real property. In this sequel, we consider the rules governing the partition and sale of concurrent interests, and its shape in the aftermath of the Perpetuities and Accumulations Act, SM 1982, c 3-4, e 43. SM 1878, c 6. Partition and Sale Act, SO 1869 (32 Vict), c 33. CCSM c L90.
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A House Divided: Access to Partition and Sale<br />
under the <strong>Law</strong>s <strong>of</strong> Ontario and Manitoba<br />
J O H N I R V I N E *<br />
I.<br />
INTRODUCTION<br />
T<br />
his paper 1 examines some important questions concerning the law <strong>of</strong><br />
partition, and <strong>of</strong> “sale in lieu <strong>of</strong> partition”, a substitute remedy which in<br />
most common law jurisdictions made its appearance in the law at a<br />
relatively late date. The writer has no ambition to cover the subject<br />
comprehensively. Rather, it is hoped that further essays in this journal will appear<br />
presently, to address issues deliberately set aside in this article. In particular, the<br />
all-important question <strong>of</strong> how judges use their discretion in this context is a topic<br />
which both deserves and needs close and separate treatment; so that all this article<br />
attempts on that topic, is to show how, again at a surprisingly recent date, the<br />
whole phenomenon <strong>of</strong> judicial discretion, with all its potential for flexible and<br />
sensible decision-making, finally entered the picture.<br />
My present aim is to draw attention to an interesting anomaly. Historically,<br />
Manitoba has <strong>of</strong>ten “borrowed” legislation from Ontario, its older and more<br />
populous neighbour, <strong>of</strong>ten with minimal adaptation. It did so in 1878, when it<br />
passed its first Partition Act, 2 essentially copying the then-current Ontario Act 3<br />
almost word-for-word. While minor differences and amendments have crept in<br />
over the ensuing 133 years, and Manitoba’s Act has been subsumed into the<br />
eclectic or amorphous <strong>Law</strong> <strong>of</strong> Property Act, 4 the statutory provisions in both<br />
provinces, especially the core provisions which will be examined in this paper,<br />
remain recognizably and obviously the “same package”. Yet when we come to<br />
examine the functioning <strong>of</strong> these essentially identical provisions, as interpreted by<br />
*<br />
1<br />
2<br />
3<br />
4<br />
Pr<strong>of</strong>essor, <strong>Faculty</strong> <strong>of</strong> <strong>Law</strong>, University <strong>of</strong> Manitoba; Member, Manitoba <strong>Law</strong> Reform Commission.<br />
The second essay in a trio <strong>of</strong> interrelated <strong>of</strong>ferings destined for the Journal. The first, found<br />
earlier in this issue and entitled “Unsettled Estates: Manitoba’s Forgotten Statute and the<br />
Chupryk Case”, addressed aspects <strong>of</strong> the province’s law regarding consecutive interests in real<br />
property. In this sequel, we consider the rules governing the partition and sale <strong>of</strong> concurrent<br />
interests, and its shape in the aftermath <strong>of</strong> the Perpetuities and Accumulations Act, SM 1982, c 3-4,<br />
e 43.<br />
SM 1878, c 6.<br />
Partition and Sale Act, SO 1869 (32 Vict), c 33.<br />
CCSM c L90.