Canadian Lawyer InHouse

Oct/Nov 2009

Legal news and trends for Canadian in-house counsel and c-suite executives

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to find other means to compel compli- ance in a cost-effective manor. In one case, the lawyers used Alberta's unlimited natural person powers and took a developer to court to argue that a receiver be appointed to take over the site. But in the case, The City of Calgary v. 1317853 Alberta Ltd. and a long list of other parties, the judge disagreed, award- ing costs to the developer against the city. The City of Calgary is appealing the mat- ter, but the decision stunned lawyers. "If you take a high-level look at it, for anyone under a mortgage, a mortgage company can go in and say I want to appoint a receiver, they get it because their mortgage document says so and the Land Titles Act will allow them," says Frank. "And that's just for financial reasons. When the city comes in on a public safety matter, we ask for it because we can, and because we have natural per- son powers, but they're reluctant to do it even though you'd think public interest or public safety will trump other issues. We have had failures, sinkholes, or voids around these sites and a seven-storey- deep excavation with shoring around it is only temporary as it's meant to be." Calgary lawyers used the 1992 case, King (Township) v. Rolex Equipment Co., where the township was successful at the Ontario Court of Justice, as prec- edent. Frank says the city has had little co-operation or support from mortgage companies, which have the power to order a property into receivership by a responsible party that will comply. "Why does a taxpayer have to pay to make a site secure when these mortgage companies, lien holders, or owners are unwilling to do it?" In sum, Frank says it's been a chal- lenging year. He was selected to oversee the work on the files because of his back- ground in litigation and bankruptcy law in private practice before joining the City of Calgary. "It's almost like we're develop- ing law here," he says, noting that the Municipal Government Act was sig- nificantly changed in 1999. "We've had some successes but I guess you can say it's been a new way to look at things." IH We have had failures, sinkholes, or voids around these sites and a seven-storey-deep excavation with shoring around it is only temporary as it's meant to be. PAUL FRANK, City of Calgary [Across the street, down the block or Canada wide — our commercial team is ready for you. ] For over 100 years, legal professionals have trusted Stewart Title to provide title insurance for their commercial real estate transactions. Some of the world's best hotels, golf courses, resorts, office towers and business centres are insured by Stewart Title. Our global reach and financial strength, combined with the expertise of our Commercial Team, enable us to handle the most complex transactions. We can facilitate specialized commercial endorsements for almost any situation. Our title insurance services provide efficient closings and fast turnaround times. With Stewart Title you can close real estate transactions with security and peace of mind. Visit www.stewart.ca to view some of our recent transactions, or call us for a quotation on your next transaction to see us in action. 1.888.667.5151 Untitled-3 1 INHOUSE OCTOBER 2009 • 12/19/08 10:28:59 AM 11

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