July 25, 2024

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What Is A Certificate Of Pending Litigation

What Is A Certificate Of Pending Litigation

What Is A Certificate Of Pending Litigation Title: “Certificates of Pending Litigation: Proper Usage and Strategies (2021 Update)” Introduction: Certificates of Pending Litigation (CPLs) play a vital role in legal proceedings, primarily designed to protect legitimate claims related to land interests until disputes are resolved. However, their misuse as leverage for financial gains is widely disapproved of in the legal world. In this updated guide, we will explore the appropriate use of CPLs, their cancellation grounds, and strategies for dealing with abusive filings.

Table of Contents:

What Is A Certificate Of Pending Litigation
What Is A Certificate Of Pending Litigation
  1. Legal Authority to File CPLs
    • Section 215(1) of the Land Title Act
    • Determining Valid Claims under Specific Statutes
  2. Grounds for CPL Cancellation
    • Section 215 of the Act: Lack of Authority
    • Section 254 of the Act: Dismissal after 30 Days
    • Section 256 of the Act: Hardship and Inconvenience
  3. Additional Counter-Measures against CPLs
    • Imposing Onerous Conditions on CPL Filers
    • Applying for Security for Costs
    • Consideration of Counterclaims for Abuse of Process
  4. Understanding the CPL Filer’s Motivation
    • Judicial Influence on CPL Filings
    • Ensuring Proper Framing of Pleadings
  5. Addressing Abusive CPL Filings
    • CPLs in Property-Related Cases
    • Potential Damages for Abuse of Process
    • Requirements for Establishing the Tort
  6. Case Studies
    • 2016 Case Study: Dhillon v. Reet Holdings Ltd
    • 2021 Case Study: B.C. Dream House Litigation
  7. Evaluating Merits of the Underlying Claim
  8. Conclusions

Authority to File CPLs: 

What Is A Certificate Of Pending Litigation
What Is A Certificate Of Pending Litigation

Section 215(1) of the Land Title Act provides a basis for CPL registration. It’s crucial to determine whether the claimant has a valid interest in land or a statutory right of action related to land under various statutes.

Grounds to Cancel a CPL: Cancellation of a CPL can be pursued under Section 215 of the Act for lack of authority, Section 254 after a claim’s dismissal, or Section 256 based on hardship and inconvenience. Each option has specific conditions and consequences.

Additional Counter-Measures: Defendants can exert legitimate pressure on CPL filers through onerous conditions, security for costs, and counterclaims for abuse of process, discouraging improper CPL filings.

Read More : What The Constitution Means To Me Pittsburgh

Perceived Motivation of the CPL Filer: 

What Is A Certificate Of Pending Litigation
What Is A Certificate Of Pending Litigation

Courts often scrutinize CPL filers’ motivations. Filings primarily aimed at securing financial gain can be seen as an abuse of the CPL process and may face legal consequences.

Dealing with Abusive Filings: Abuse of CPLs is common in property-related cases, often used to disrupt transactions or pressure landowners. Abusive CPL filings may lead to damages for the tort of abuse of process.

Case Studies: Two case studies, including Dhillon v. Reet Holdings Ltd in 2016, illustrate successful strategies for dealing with CPLs, leading to their swift and consensual discharge.

Read More : What Is A Preliminary Title Report

Evaluating Merits of the Underlying Claim: 

What Is A Certificate Of Pending Litigation
What Is A Certificate Of Pending Litigation

Determining the legitimacy of the underlying claim is essential in CPL cases to avoid misuse and ensure CPLs serve their intended purpose.

Conclusions: Proper usage of CPLs is crucial to maintain the integrity of the legal system. Understanding CPL regulations and strategies for dealing with abusive filings can lead to successful outcomes in CPL-related proceedings.