The appellants sought a declaration that a 99-year lease registered against their property in 1972 was void, alleging it violated the Planning Act's subdivision prohibition.
The lease was entered into in 1968 between the respondent and the appellants' predecessor in title.
The application judge found that an oral lease agreement existed with part performance before the relevant statutory exemption was removed on May 2, 1968, thereby validating the lease.
The appellants appealed on three grounds: procedural fairness, lack of evidentiary support for part performance, and misapplication of the part performance test.
The Court of Appeal allowed the appeal, finding that the application judge denied procedural fairness by raising the oral lease and part performance issues only at the conclusion of argument and then refusing to permit the appellants to file further evidence to address these issues.