The appellant, a former owner of a Toronto property, retained an interest in the property's surplus density through a Density Agreement registered on title.
The property was subsequently sold to a company that later sought creditor protection under the CCAA.
A court-approved Settlement Order vested the property in the respondent 'free and clear' of claims.
The respondent successfully applied to the Superior Court to discharge the Density Agreement from title.
On appeal, the Court of Appeal held that the Settlement Order only applied to assets the debtor company actually owned, which did not include the surplus density.
The appeal was allowed and the Density Agreement remained on title.