Agricultural Law NetLetter - Thursday, May 21, 2015 - Issue 324

** HIGHLIGHTS ** *

An Alberta Master in Chambers has held that specific performance is not available for farm land unless the party seeking specific performance could meet the burden of establishing that the land is "unique" in the sense that it is "irreplaceable" or "one of a kind". The Master was satisfied the Plaintiffs had not met this burden. He granted the Defendants partial summary judgment, dismissing their claim for specific performance and discharging their Caveat and Lis Pendens. (Klimp v. Meinema, CALN/2015-013, [2015] A.J. No. 339, Alberta Court of Queen's Bench) ** NEW CASE LAW **

Klimp v. Meinema; CALN/2015-013, Full text: [2015] A.J. No. 339; 2015 ABQB 204, Alberta Court of Queen's Bench, Master W.S. Schlosser (In Chambers), March 27, 2015.

Real Property -- Enforcing Agreements for Sale -- Availability of Specific Performance to Enforce a Sale of Farm Land.

The Plaintiffs, William Rod Klimp and Joyce Jeannette Marie Hoedl-Klimp (the "Klimps") entered into an agreement with Kevin Shawn Meinema and Gladys Ann Meinema (the "Meinemas") pursuant to which the parties agreed to "swap" two parcels of land valued at $90,000.00 each near Sunset House, Alberta.

The Klimps also granted the Meinemas an option to purchase a third quarter section of land for $60,000.00.

The Klimps sued the Meinemas for specific performance of the land "swap" and filed a Caveat and a Lis Pendens against the land.

The Meinemas applied for partial summary judgment to have a portion of the claim dismissed and to have the Caveat and Lis Pendens discharged from their land, because it was preventing them from selling it to someone else.

The Klimps had initially entered into a separate concurrent agreement to sell the optioned land for $60,000.00, with the sale to conclude at the same time as the transfer of the other two parcels.

A revised agreement which granted the Meinemas an option to purchase this land for $60,000.00 was subsequently signed.

Prior to the date for the exercise of the option, the Klimps sold the optioned land to third parties.

Decision: Schlosser, Master in Chambers granted the Meinemas' application, summarily dismissed their claim for specific performance against the Klimps and directed that the Caveat and Lis Pendens be discharged [at para. 25 and 26].

Master Schlosser observed [at para. 16] that if the option for part of the swap agreement, the Klimps could not "claim specific performance of an agreement that they, themselves, are unable to...