Léo Di Battista

The appellant appealed a decision of the Quebec Court of Appeal that reversed a trial judgment ordering the respondent to pay the balance of an account for goods sold and delivered.

The Supreme Court of Canada allowed the appeal and restored the trial judgment, with Stevenson J. dissenting.

The appellants purchased subdivided lots and registered their titles.

The registrar failed to note the subdivision on the index of the original lots.

The respondent, a creditor of the original owner, subsequently registered a judgment and sale against the original lots.

The respondent sought to be declared the absolute owner of the lots, arguing his registrations had priority.

The Supreme Court of Canada held that subdivision is a cadastral operation, not a real right, and is effective upon deposit of the plan.

The registrar's failure to note the subdivision did not invalidate it.

Therefore, the respondent's registrations against the non-existent original lots were invalid, and the appellants' titles to the subdivided lots prevailed.