Ken McEwan, Q.C. and Emily Kirkpatrick were successful on behalf of the respondent, Crystal Square Parking Corp. in upholding the decision of the British Columbia Court of Appeal. The case concerned a dispute over the obligation of a strata corporation to pay for parking as provided for in an agreement that had been executed at the time of the property’s development (before the strata existed). At trial, the court had rejected Crystal Square’s argument that the strata was bound by any agreement. On appeal before the British Columbia Court of Appeal, Ken and Emily successfully argued that the strata was bound by a post-incorporation contract entered into on the same terms as the pre-incorporation agreement.
In upholding the decision of the British Columbia Court of Appeal, the Supreme Court of Canada (Rowe J., dissenting in part) clarified and confirmed the law of pre-incorporation contracts, as well as the law in respect of contract formation, more generally. The Court also addressed the interplay between the Strata Property Act and contract law, and between contract law and real covenants, respectively. The full reasons can be found here.