J. D. Bruce McDonald

The appellant and respondents held competing claims to mineral rights in a parcel of land under the Torrens system.

The appellant claimed priority through a lease caveated in 1976, which he acquired by assignment in 1979.

The respondents claimed through a chain of interests originating from an agreement of sale caveated in 1969, but that caveat had lapsed in 1978.

The Supreme Court of Canada held that the lapse of a caveat results in the loss of priority for the underlying interest vis-à-vis other encumbrancers.

Furthermore, the appellant, as an assignee, stepped into the priority position of the original 1976 caveat, undiminished by the respondents' intervening caveats.

The appeal was allowed and the non-suit order was quashed.

The deceased, who had a history of mental illness, executed a trust agreement placing her inherited property in trust for her life, with the remainder to her mother's grandchildren.

Her brothers, who were the trustees, had initiated the legal consultation.

After her death, her son challenged the trust agreement on the basis of undue influence.

The trial judge found no actual undue influence and upheld the agreement.

The Court of Appeal reversed, applying a presumption of undue influence.

The Supreme Court of Canada allowed the appeal, holding that while the relationship gave rise to a presumption of undue influence, the trial judge's finding of fact that no influence was actually exerted rebutted the presumption.

The Court also clarified that 'manifest disadvantage' is not required to trigger the presumption in cases of gifts or bequests.