The respondent in a family proceeding brought a motion to set aside a Certificate of Pending Litigation registered against residential property, arguing the applicant had no reasonable claim to an interest in the land.
The applicant asserted a constructive, resulting, or implied trust based on unjust enrichment arising from an eight‑year cohabitation during which she performed domestic and caregiving roles that allegedly enabled the respondent to focus on his business activities.
Applying the test under s. 103(6) of the Courts of Justice Act and the principles in Kerr v. Baranow, the court held that although the claim appeared weak, it was not devoid of merit and constituted a reasonable claim to an interest in land.
The court further exercised its equitable discretion to maintain the certificate, noting evidence that the moving party had previously engaged in sham transfers and asset shielding.
The motion to discharge the Certificate of Pending Litigation was dismissed.