The appellant, a company that purchased land in Kingsville, Ontario, gave a promissory note for $171,000 to Ronald Colasanti in exchange for an assignment of a water allocation.
When the appellant refused to pay, claiming the promissory note was void for failure of consideration, the trustees of Colasanti's estate brought an action in debt.
The trial judge found valid consideration existed and awarded judgment.
On appeal, the appellant renewed its argument that the water allocation never belonged to Colasanti and therefore could not constitute valid consideration.
The Court of Appeal dismissed the appeal, holding that the appellant obtained an immediate resolution of its water supply problem and a building permit, which constituted valid consideration regardless of the legal status of the water allocation itself.
