The appellant, an unsecured judgment creditor of the respondent's husband, appealed an order setting aside the transfer of the matrimonial home from the respondent to her husband.
The motion judge had found the transfer was void due to undue influence and, alternatively, that the husband held the property in trust for the respondent.
The Court of Appeal allowed the appeal in part, holding that the finding of undue influence could not stand because it was not pleaded, depriving the appellant of procedural fairness.
However, the Court upheld the finding that the respondent did not intend to gift the property and held an interest by way of resulting or constructive trust, remitting the matter to determine the extent of that interest.