City of Ottawa v. ClubLink Corporation ULC

(Ontario) (Civil) (By Leave)


Contracts - Property, Real property - Contracts — Property — Real property — Rule against perpetuities — Agreement between city and land developer requires golf course be operated in perpetuity or, if decision is made to discontinue golf course operations, owner of golf course lands must offer to convey property to city — Golf course in operation more than 21 years — Whether rule against perpetuities applies — When does a conditional right to demand a conveyance create a proprietary interest in land — If parts of agreement violate rule against perpetuities, whether to apply remedy of severance?.


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A covenant in agreements between a land developer and a city obliges the owner of lands to operate a golf course in perpetuity and stipulates that if the owner desires to discontinue operation of a golf course and can find no other operator, it shall offer to convey the lands to the city at no cost. A golf course has been operated for more than 21 years. The Superior Court of Justice declared the covenant enforceable. The Court of Appeal held that the covenant violates the rule against perpetuities and is unenforceable.