The applicant sought a declaration that a $10 million host community grant, received by the respondent municipality, was subject to a trust for the exclusive benefit of ratepayers of the former Hope Township (now Ward 2), and an accounting.
The municipality argued it was a contract, no trust was settled, or if it was, it violated the rule against perpetuities and the claim was statute-barred.
The court found the grant constituted a specific non-charitable purpose trust, properly constituted, but violated the vesting rule against perpetuities.
However, it was saved by s. 16(1) of the Perpetuities Act, converting it into a special power to appoint income and capital until April 12, 2022.
The municipality was found in breach of its trustee duties for not adhering to the trust's strict terms and was ordered to provide an accounting.
The claim was not statute-barred nor defeated by laches or acquiescence.