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ARTICLE · 19 MAY 2016

A Lesson In Maintaining Privity: SCC Resolves Dispute Over Interpretation Of Alberta Agreement

Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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Blake, Cassels & Graydon LLP

Blake, Cassels & Graydon LLP

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In the summer of 2004, the City of Calgary (City) enacted a bylaw designating the Lougheed Building as a historic resource under the HRA.

CanadaReal Estate and Construction
Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
Dalton McGrath, K.C.
Dalton McGrath, K.C.
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On May 6, 2016, in Heritage Capital Corp. v. Equitable Trust Co., the Supreme Court of Canada (SCC) weighed in on one of the many disputes stemming from the foreclosure proceedings taken with respect to the historic Lougheed Building in downtown Calgary. This particular dispute concerned the entitlement to certain payments from the City of Calgary connected to the designation of the Lougheed Building as a Municipal Historic Resource under section 26 of the Historical Resources Act (HRA).

The decision illustrates the principle differences between property and contract law, implicitly emphasizing common law principles around privity of contract and privity of estate, including the scope of the statutory exception created by the HRA, which allows a narrow subset of positive covenants to run with lands designated as historic resources. The decision is also significant as it is one of the first times the SCC has considered its decision in Sattva Capital Corp. v. Creston

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