Toronto Certificate of Pending
Litigation Lawyers

When a dispute arises that involves a parcel of land, a party to the dispute may wish to obtain a Certificate of Pending Litigation (“CPL”) over that land. Gilbertson Davis LLP has lawyers with experience in both obtaining and setting aside a Certificate of Pending Litigation (CPL).

Freezing Land from Sale, Transfer or Mortgage

Once registered, a CPL provides notice to all others interested in dealing with the land that there is a disputed interest over that land, and any transfers or claims subsequent to that notice will be subject to whatever claim is being asserted.

In practice, this has the effect of preventing any other persons, including the current owners, from dealing with the property, including selling it, transferring it, or even re-financing it, since anyone looking to deal with the land will not want to do so subject to someone else’s claims. A CPLprovides security for an interested party with respect to their alleged interest in land.

Claims and Disputes Leading to Certificate of Pending Litigation

Interests in land and claims and disputes ownership or title can arise in many different ways, including:

• agreements of purchase and sale where one party is refusing to complete the transaction
• disputes involving ownership, sale or assignment of sale of property
• tracing actions where fraudulently obtained funds are used to purchase property
• where a party is claiming a mortgage interest that may not have been formally registered

The purpose of a CPL is to prevent any interests in the property from being further distanced or diluted from the issues in the claim, particularly where the property is unique or the interest in dispute cannot otherwise be satisfied with a monetary award. The CPL freezes the property pending the dispute and intended litigation.

For this reason, a motion for a CPL, like an injunction is brought urgently and without notice, as notice of proceeding to others may encourage and allow them to deal with the property before the CPL can be obtained.

Setting Aside, Removing, Discharging or Cancelling a Certificate of Pending Litigation

Once obtained, affected parties may move to have a CPL set aside or discharged, on the basis that the asserted interest in land is not a meritorious claim, or where it can be shown that the CPL imposes an undue hardship or inconvenience and alternative security can be provided.

If a CPL is set aside after being obtained without notice, the party who originally obtained it may be liable for any damages that may have resulted from the CPL being issued. It may result also in a claim for slander of title, based on a false and meritless claim to title or ownership to land that causes loss or damage to another.

Urgent Remedy

Whether you are seeking to secure a CPL or seeking to remove a CPL, it is important that you act quickly to assert or preserve your rights, and that you retain effective legal counsel to assist.

Gilbertson Davis LLP can serve your needs with lawyers who have acted in obtaining and discharging Certificates of Pending Litigation, and we can advise you on the benefits and risks of obtaining one or discharging one.

If you have a dispute or claim involving an interest in land, contact us for an initial consultation.