This appeal concerned the application of the rule against perpetuities to land development agreements.
ClubLink Corporation ULC appealed a lower court decision that upheld perpetual obligations to operate a golf course or convey the land to the City of Ottawa.
The Court of Appeal found that the contractual provisions requiring conveyance of the golf course lands to the City, or reconveyance back to the original owner, created contingent interests in land.
As these interests did not vest within the 21-year perpetuity period, they are void and unenforceable.
The court clarified that the expectation of a contingency materializing is not a factor in determining if an interest in land is created.
The appeal was allowed, and the relevant sections of the 1981 Agreement were declared void.
