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Legal Blog:
Jun
01
2026
Sword
Live by the sword; die by the sword. Bad things can happen when a plaintiff decides to commence an action while still an undischarged bankrupt and, worse yet, does not notify his trustee in bankruptcy of his claim. The plaintiff in Little v. Bramcan Investments Limited, a 2025 decision of the Ontario Court of Appeal, learned this the hard way.
Complaint
Tenant started an action against his former landlord and two of the landlord’s officers and directors. In the action, tenant claimed the value of personal property that landlord converted (by disposition). All of the assets arose out of a fitness and strength building business that tenant ran. The statement of claim alleged that the value of the assets was approximately $250,000, but tenant later claimed that the assets were worth $430,000. Presumably, landlord had taken possession of the leased premises upon tenant’s default and, deciding the assets had no real sale value that would have exceeded the costs of disposition, pitched them.
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01
2026
Part Performance
We all know about the Statute of Frauds: a contract for the sale of land must be in writing. We also know that the exception to the general rule is the doctrine of part performance. The Ontario Court of Appeal has written several decisions explaining part performance. One of the most recent is in 2730453 Ontario Inc. v. 2380673 Ontario Inc. 2025 ONCA 112, leave to appeal to the Supreme Court of Canada refused.
Trial Findings
The trial judge found that (i) in September 2019, a seller orally agreed to sell lands it owned to a purchaser for a price of $4.1 million, closing on or before January 8, 2020, (ii) after the parties made their agreement, they engaged in a process toward closing, (iii) on the closing date, the purchaser tendered the required documents and funds, (iv) the seller refused to close without legal justification, and (v) referring to conduct leading up to and at the aborted closing, the doctrine of part performance applied. The trial judge ordered the seller to specifically perform the oral agreement.
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