The plaintiffs were beneficial owners of a property held in trust by the defendant Bertrand, who was the registered owner.
Bertrand sold the property to 670 without the plaintiffs' consent and signed a false affidavit to clear executions against his name.
The trial judge found the transfer was a 'fraudulent instrument' under the Land Titles Act, declared it void, and ordered rectification of the register.
On appeal, the Divisional Court held that the trial judge erred in law.
Bertrand was not a 'fictitious person' and did not forge the transfer, as he was the true registered owner with legal authority to convey the property.
Furthermore, 670 was a bona fide purchaser for value without notice, protected by s. 62(2) of the Act, which states that describing an owner as a trustee does not constitute notice of a trust.
The appeals by 670 and the Director of Titles were allowed, confirming 670's ownership, while Bertrand's appeal against the findings of fact was dismissed.
The matter was remitted to the trial court to assess damages against Bertrand.