Brian Morris

The plaintiff estate trustee brought an action regarding the proceeds from the sale of a property jointly developed by the deceased and the defendant, her former common-law partner.

The defendant relied on a cohabitation agreement that provided property division would be determined solely by legal ownership.

The plaintiff relied on a subsequent oral property development agreement, confirmed in writing by the defendant, that provided for the return of investments and equal sharing of profits.

The court found that neither party understood the cohabitation agreement to apply to their property development activities and set it aside in part under s. 56(4) of the Family Law Act.

The court awarded the plaintiff $3,145,682.88 based on the property development agreement.

The moving parties sought to dismiss an application challenging a continuing power of attorney and seeking various related remedies on the basis of res judicata.

They argued that similar issues had already been raised in related proceedings and resolved through minutes of settlement.

The court held that the doctrine of res judicata requires a final judicial determination between the same parties or their privies, and that a private settlement agreement without a court order does not constitute such a determination.

Because the responding party was not a party to the settlement and no judicial decision resolved the issues, the prerequisites for cause of action estoppel or issue estoppel were not met.

The motion to dismiss the application was therefore denied.