Facts: Memphis Blues BBQ International Ltd. filed a notice of civil claim against P.K. Johnson Inc. and others, alleging breaches of franchise agreements for restaurants in Surrey and Abbotsford, BC. The claim included allegations of unpaid royalties and the defendants starting a competing business in violation of the agreements. Memphis Blues also filed a certificate of pending litigation (CPL) against real property owned by defendant Paul Daniel Johnson.
Issue: The primary issue was whether the plaintiff’s pleadings supported a claim to an interest in the land as required for the CPL to be valid under section 215 of the Land Title Act. Paul Daniel Johnson applied for the CPL's cancellation, arguing the pleadings did not establish a claim to an interest in the property.
Court’s Ruling: The Supreme Court of British Columbia concluded that the plaintiff’s pleadings did not support a claim to an interest in land and ordered the CPL to be cancelled. The court found that the pleadings did not demonstrate a substantial and direct link between the claim and the property or that monetary damages were inadequate, which are necessary to establish a remedial constructive trust.
Costs/Damages: The court awarded costs of the application to cancel the CPL to the defendant, Paul Daniel Johnson, on the ordinary scale, but the specific amount of costs or damages was not detailed in the provided excerpts.
