The purchasers contracted to buy a home owned 99% by one owner and 1% by the other.
There was a judgment, unrelated to any work or materials provided to the home, registered against the 1% interest. The market value of the 1% interest was about $2,000, whereas the judgment was for $15,000. The judgment holder, when asked by the purchasers to remove its judgment in return for the payment of $2,000 and the right to continue against the 1% holder personally, refused, demanding the entire $15,000 before it would remove the judgment.
Mr. Barron was successful in obtaining an order discharging the judgment against the property, on the principle that a judgment creditor cannot obtain a greater interest in the home than the judgment debtor. The court also awarded special costs against all of the defendants.
The judgment holder, as is reported in Webber v. Dulai Roofing Ltd., 2006 BCCA 501, appealed the order removing its judgment against the home and the order for special costs. The Court of Appeal upheld the order cancelling the judgment against the home, but ordered ordinary rather than special costs against the judgment holder.