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ARTICLE · 12 JUNE 2012

A Rascal Of A Doctrine: The Elusive Definition Of Resulting Trust

McCarthy Tétrault
McCarthy Tétrault
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The Supreme Court of Canada has recently granted leave to appeal from the judgment of the British Columbia Court of Appeal in Edward Sumio Nishi v. Rascal Trucking Ltd.

CanadaLitigation, Mediation & Arbitration
Ronald Podolny
Ronald Podolny
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The Supreme Court of Canada has recently granted leave to appeal from the judgment of the British Columbia Court of Appeal in Edward Sumio Nishi v. Rascal Trucking Ltd. This appeal focuses on the test for a resulting trust in the commercial context. The decision will be of interest to a broad range of business enterprises and commercial counsel.

Background

The action arose out of a purchase of land by two business partners. Hans Heringa, a successful civil engineer and owner of Rascal Trucking Ltd. ("Rascal") developed a property located in Nanaimo, British Columbia, with Cidalia Plavetic, a realtor.

As a result of nuisance complaints due to Rascal's operations (soil processing), the city changed the zoning on the property. Rascal then ceased carrying on business on the property. The City liened the property in order to secure the cost of the removal of topsoil placed on it by Rascal. At that point, Ms. Plavetic concluded that there was no equity left in the

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