In a family law proceeding following separation, the applicant obtained an ex parte certificate of pending litigation (CPL) against a property purchased by the respondent after separation.
The respondent argued that the CPL should be discharged because the applicant had not asserted a direct legal or equitable interest in the property.
The court considered whether claims for equalization of net family property, a vesting order under s. 9(1)(d), and preservation orders under s. 12 of the Family Law Act were sufficient to bring an interest in land into question.
Relying on Nash v. Gilbert, the court held that such claims can ground a CPL because they place an interest in land in issue within the statutory scheme of equalization and preservation of assets.
Although the CPL was discharged by consent to permit the closing of a sale to third-party purchasers, the court ordered that the entire net proceeds of sale be held in trust pending further order.