The Estate Trustees of Allen Berg's estate sought court direction to determine the beneficial ownership of a cottage property.
Legal title was held by Melamel Properties Inc., whose shares were owned by the estate.
Judith Berg, the deceased's widow, claimed the entire beneficial interest or a 50% interest.
The court found that the deceased had created an express trust, holding the property for himself and Judith Berg as equal tenants in common.
The deceased's subsequent attempt to transfer the property solely to Melamel Properties Inc. for his exclusive benefit was deemed ineffective due to misstatements and breach of fiduciary duty, as Judith Berg's beneficial interest could not be unilaterally divested.
The court vested an undivided one-half interest in Judith Berg personally and an undivided one-half interest in the Estate of Allen Berg as tenants in common.
