Supreme Court of Canada
District Registrar of Portage La Prairie v.
Canadian Superior Oil of California Ltd., [1954] S.C.R. 321
Date: 1954-05-19
The District Registrar of The Land Titles District
of Portage La Prairie (Defendant) Appellant;
and
Canadian Superior Oil of California
Ltd. and William Hie Bert (Plaintiffs) Respondents.
1953: November 24, 25, 26; 1954: May 19.
Present: Rinfret C.J.,
Kerwin, Taschereau, Rand, Kellock, Estey, Locke, Cartwright and Fauteux JJ.
Real Property—Crown lands brought under Real Property
Act (Man.)— Minerals not reserved in certificate of title—Title of bona fide
purchaser from registered grantee from Crown—Whether “grant from Crown”
includes a transfer therefrom—Manitoba Provincial Lands Act, 1887, c. 21, ss.
20, 21—Provincial Lands Act, R.S.M., 1913, c. 155, s. 25—Real Property Act,
R.S.M., 1913, c. 171, ss. 2(a), 78(a), 79— Real Property Act, R.S.M., 1940, c.
178, ss. 61, Dominion Lands, 1883, c. 17, s. 43.
The title to the lands giving rise to the present appeal was
originally in the Crown in the right of Canada which, in 1901 by Order in
Council, vested it in the Crown in the right of the Province of Manitoba.
Shortly thereafter one “M” made application to purchase the lands on terms
which provided that all valuable stone, coal or other minerals were reserved to
the Province. The latter in 1903 by Order in Council directed that the lands be
brought under the operation of The Real Property Act (Man.) and a
certificate of title issued to the Crown in the right of the Province. In 1914 “M”
quit claimed his rights to one “N”: to whom, on completion of payment of the
purchase price in 1919, a. transfer in the form prescribed by The Real
Property Act, (R.S.M. 1913, c 171) of all the estate and interest of the
Crown in
[Page 322]
the lands was executed and a new certificate of title issued.
There was no specific mention of minerals either in the certificate or the
transfer but the latter was under the Act made subject to any reservation
contained in the original grant from the Crown. Subsequently the lands became
vested in the respondent Hiebert to whom was issued a certificate of title similar
to that issued “N”. Hiebert executed a lease of the petroleum and natural gas
in the lands of which the respondent oil company became the assignee. The
latter presented a caveat to the appellant for registration based on the lease
and assignment thereof. ‘The appellant refused to register it on the ground
that the lessee had no estate or interest in the lands. In the litigation that
ensued the appellant contended that the petroleum and natural gas by reason of
s. 21 of The Manitoba Provincial Lands Act, 1887 did not at any time
pass from the Crown. The contention of the respondents, which prevailed in the
courts below, was that as there was no express reservation in the original
-transfer from the Crown the mineral rights passed to the transferee and were
not reserved by s. 21.
Held (Rinfret C.J., Estey and Locke JJ. dissenting) :—
1. That in enacting the Manitoba Provincial Lands Act,
1887, the Legislature expressly brought all lands held by the Crown in the
right of the Province under that general statute.
2. That in construing the Provincial Lands Act (R.S.M.
1913, c. 155) and
The Real Property Act (R.S.M. 1913, c. 171) the two
statutes must be read together and when so read the word “grant” in the
declaration contained in s. 24 of the 1887 Act (s. 25 of R.S.M. 1913, c. 155),
that no grant from the Crown of lands in freehold has operated or will operate
as a conveyance of any minerals therein unless expressly conveyed in such
grant, includes a transfer of lands from the Crown under The Real Property Act.
The effect of s. 21 is as if the transfer bore an endorsement that it was
subject to the provisions of s. 21.
Per Rinfret C.J. and Locke J., dissenting:—Section 21
of the Manitoba Provincial Lands Act, 1887 (s. 25 of R.S.M. 1913, c.
155) with a minor change, was taken verbatim from s. 43 of the Dominion
Lands Act, 1883 and the words “grant from the Crown” should be attributed
the same meaning in both statutes, that is, as referring only to grants by
letters patent, As in the case of the Dominion Act, the only means specified
for conveying Crown lands was in this manner.
The transfer to “N”, made in the form prescribed by The
Real Property Act of 1913 pursuant to Order in Council of Nov. 10, 1914,
transferred “all our estate and interest in the said land”. By virtue of the
definition of land in The Real Property Act, and of s. 88 of that Act,
there being no contrary intention expressed in the transfer, all mines and
minerals in the lands were “expressly conveyed in such grant” within the
meaning of s. 25 of the Provincial Lands Act of 1913, if the transfer
was a grant.
Per Estey J. (dissenting) :After the enactment of The
Lands Registration Act in 1880. and The Real Property Act of 1885 Manitoba
had two systems of land registration. The Manitoba Provincial Lands Act,
1887 did not alter or amend either and the Crown. thereafter made its
conveyances according to which Act its land was under. The contention that a.
conveyance by.” way of “grant” would not include a “transfer” therefore cannot
be accepted. Here since the Crown’s title
[Page 323]
to the land was under a statute which contemplated that a
conveyance should be made by transfer it must follow that the term “grant” in
legislation providing for the administration of such land must be. read to
include the word “transfer” as used in The Real Property Act. That Act
contemplated that whenever the Crown granted land under it it would foe by way
of patent deposited with the Registrar and the issue of a certificate of title
to the transferee. The land here was placed under that Act by Order in Council
and conveyed by transfer so that the transfer must be accepted as the original
grant from the Crown. Since under The Real Property Act of 1885 and the Manitoba
Provincial Lands Act, 1887 “land” is defined to include “minerals”, the
conveyance to “N” would include them because they were not specially excepted.
APPEAL from a judgment of the Court of Appeal for
Manitoba
affirming with a variation the judgment of Freedman J..
A. E. Hoskin, Q.C. and John Allen, Q.C.
for the appellant.
J. G. Cowan, Q.C. for the Attorney General of
Manitoba.
F. M. Burbridge, Q.C. and D. C. L. Jones
for the respondents.
The dissenting judgment of Rinfret C.J. and Locke J. was
delivered by:—
Locke J.:—It
is, in my opinion, necessary, in order to determine the questions raised in
this appeal as to the proper interpretation of s. 25 of The Provincial Lands
Act (R.S.M. 1913, c. 155) and of the relevant sections of The Real
Property Act (R.S.M. 1913, c. 171, R.S.M. 1940, c. 178), to examine the
legislation enacted, both by Parliament and by the Provincial Legislature,
defining the manner in which the public lands in Manitoba should be dealt with
following the ‘creation of that province in 1870.
The Manitoba Act 1870 (33 Vic. c. 3) provided, inter alia,
that all grants of land in freehold made by the Hudson’s Bay Company up to
March 8, 1869, should, if required by the owners, be confirmed by grant from
the Crown, the mode and form of such grants to be determined by the Governor
General in Council.
The first Dominion Lands Act related exclusively to
the public lands of Manitoba and the Northwest Territories and was enacted as
c. 23 of the Statutes of 1872. This
[Page 324]
defined the manner in which the lands acquired by Canada by
virtue of the surrender of the rights of the Hudson’s Bay Company in Rupert’s
Land and the North-Western Territory might be dealt with. Provision was made
for sales of such land and the granting of homestead rights to settlers. On the
completion of such purchases or the fulfilment of the prescribed homestead
duties it was provided that title should be conveyed by letters patent, to be
signed on behalf of Her Majesty by the Governor General or his Deputy, and the
grants to those holding titles by grants from the Hudson’s Bay Company were to
be made in like manner. By the terms of the deed of surrender from the Hudson’s
Bay Company to the Crown, that company was entitled to certain lands in each
township in part of the territory surrendered: as to part of these, it was
provided by s. 21 that title should be vested in the company without requiring
patents to issue: as to the remainder, letters patent in the name of the
company were to be granted. Section 36 of the Act provided that no reservation
of gold, silver, iron, copper or other mines or minerals should be inserted in
any patent from the Crown granting any portion of the Dominion lands.
The Act of 1872 was repealed by c. 31 of the Statutes of
1879 which was described as an Act to Amend and Consolidate the several Acts
respecting the Public Lands of the Dominion. This substantially reproduced the
earlier Act. Section 36 of the Act of 1872 appeared as s. 37 of the
Consolidated Act.
By c. 26 of the Statutes of 1880 s. 37 and other sections which
had appeared in the Acts of 1872 and 1879 under a sub-heading “Mining Lands”
were repealed and a section substituted which provided that lands containing
gold or other minerals should not be subject to the provisions of the Act
respecting sale or homestead but should be disposed of in such manner as might
from time to” time be determined by the Governor in Council by regulations to
be made in that behalf.
The Act was again repealed and consolidated by c. 17 of the
Statutes of 1883. The amendment of 1880 which had’ replaced s. 37 of the Act of
1879 appeared as s. 42, with
[Page 325]
other sections, under a sub-heading “Mining and Mining
Lands.” Section 43 of this Act, forming part of this group of sections read:—
It is hereby declared that no grant from the Crown, of lands
in freehold or for any less estate, has operated or will operate as a
conveyance of the gold or silver mines therein, unless the same are expressly
conveyed in such grant.
In this Act, settlers making homestead entries were given
the further right of making a pre-emption entry for an adjoining unoccupied
quarter section of land.
The surrender by the Hudson’s Bay Company, as has been
stated, was made to the Dominion of Canada and the Province did not, with some
minor exceptions for roads or road allowances, receive any part of the public
lands within its boundaries when constituted in 1870. Thereafter, however, the
Province became entitled to certain lands by reason of arrangements made with
the Dominion in respect to drainage and it became necessary to provide a means
whereby such lands and any other lands that the province might acquire might be
sold or disposed of. Accordingly, by c 12 of the Statutes of Manitoba of 1883,
provision was made whereby any such lands which had become, or might thereafter
become, the property of the province might be sold and title given under
letters patent under the Great Seal of the Province, duly authorized by the
signature of the Lieutenant-Governor and the Secretary of the Province.
The Real Property Act, 1885 (c. 28) introduced the
Torrens system into Manitoba. Under this Act a certificate of title issued by
the Registrar General (whose appointment was provided for) and signed by him
under his seal of office, became the root of title to lands subject to the Act
in lieu of letters patent issued either under the Dominion Lands Act or
the Provincial Lands Act of Manitoba.
The interpretation section of the Act contained the
following definitions which bear upon the present matter:—
3. In this Act, and in all instruments purporting to be made
or executed thereunder, unless the context otherwise requires:—
(1) The expression “Land” shall extend to and include land,
messuages, tenements and hereditaments, corporeal and incorporeal, of every
kind and description, whatever may be the estate or interest therein, together
with all paths, passages, ways, water-courses, liberties, privileges,
easements, mines, minerals and quarries appertaining thereto, and all trees and
timber thereon, and thereunder lying or being, unless any such are specially
excepted;
* * *
[Page 326]
(19) The expression “Grant” shall mean and include any grant
of Crown land, whether in fee or for years, and whether direct from Her Majesty
or pursuant to the provisions of any statute.
By s, 22 it was provided:—
Hereafter no words of limitation shall be necessary in any
conveyance of any land in order to convey all or any title therein, but every
deed or instrument conveying land shall operate as an absolute conveyance ‘of
all such right and title as the grantor has therein at the time of its
execution, unless a contrary intention be expressed in such conveyance; but
nothing herein contained shall preclude any conveyance from operating by way of
estoppel; and hereafter the introduction of any words of limitation into any
conveyance or devise of any land, shall have the like force and meaning, as the
same words of limitation would have if used by way of limitation of any
personal estate, and no other.
Part V of the Act defined the procedure under which owners
of land might apply to have their title registered under the Act and obtain
certificates of title.
Section 61, so far as relevant to the present matter,
read:—-
61. The land mentioned in any certificate of title granted
under this Act, shall, by implication, and without any special mention in the
certificate of title, unless the contrary be expressly declared, be deemed to be
subject to:—
(a) Any subsisting reservations contained in the
original grant of said land from the Crown;
* * *
(g) Any right of expropriation which may by statute
be vested in any person or body corporate;
Section 62 read:—
62. Every certificate of title granted under this Act, when
duly registered, shall (except in case of fraud wherein the registered owner
shall have participated or colluded) so long as the same remains in force and
uncancelled under this Act, be conclusive evidence at law and in equity as
against Her Majesty and all persons whomsoever, that the person
named in such certificate is entitled to the land included in such certificate,
for the estate or interest therein specified; subject to the exceptions and
reservations mentioned in section 61, except as far as regards any portion of
land that may by wrong description of boundaries or parcels be included in such
certificate when the holder of such certificate is neither a, purchaser or
mortgagee for value, nor the transferee of a purchaser or mortgagee for value,
and except as against any person claiming under any prior certificate of title
granted under this Act in respect of the same land and for the purpose of this
section, that person shall be deemed to claim under a prior certificate who is
holder of, or whose claim is derived directly or indirectly from the person who
was the holder of the earliest certificate granted, notwithstanding such
certificate may have been surrendered and a new certificate granted upon any
transfer or dealing.
[Page 327]
Section 65 provided that an owner
desiring to transfer the title of property under the Act might execute a
transfer in the form contained in Schedule D and required such transfer to
contain an accurate statement of the estate intended to be conveyed.
Part XV provided for the setting up of an Assurance Fund
which might be resorted to in certain specified events, which included losses
sustained by any omission, mistake or misfeasance of the Registrar-General or
of anyone employed in the various Land Titles Offices.
In 1887 the Provincial Lands Act of 1873 was repealed and a
new statute substituted (c. 21). The preamble to this statute read:—
Whereas it is expedient and necessary to make provision for
the administration of the public lands now acquired or which may be hereafter
acquired in any manner whatsoever by the Government of the Province of
Manitoba, whether earned under the Statutes or Orders-in-Council of this
Province, or of the Dominion of Canada relating to the draining of submerged or
swamp lands, or the granting of swamp lands to this Province for public
purposes, lands foreclosed under mortgages or acquired for arrears of taxes and
all lands that may be or become vested in Her Majesty for the use of this
Province or in any way become the property of this Province:
Therefore Her Majesty by and with the advice and consent of
the Legislative Assembly of Manitoba, enacts as follows:—
By s. 1 the expression “Land” was declared to extend to and
include, inter alia, mines, minerals and quarries appertaining thereto. As in
the case of the earlier statutes, it was provided that conveyances of
Provincial lands should be made by letters patent issued under the Great Seal
of the Province.
By s. 12 provision was made whereby Provincial lands which
had been sold and the purchaser’s interest, having become liable to taxes, sold
for arrears, the Land Commissioner might direct the issue of letters patent to
the purchaser at such tax sale upon completion by him of the conditions of
location or sale.
Under the sub-heading “Mining Lands”, s. 20 provided that
lands containing coal or other minerals should be disposed of in such manner
and on such terms as might be fixed by the Lieutenant-Governor in Council, the
language being merely an adaptation of the language of s. 42 of the Dominion
Lands Act, 1888.
[Page 328]
Section 21 read:—
It is hereby declared that no grant from the Crown of lands
in freehold or for any less estate has operated or will operate as a conveyance
of the gold or silver mines or any other mineral therein, unless the same ‘are
expressly conveyed in such grant.
It will be noted that this was almost a replica of s. 43 of
the Dominion Lands Act which is above set out, the only change made
being that after the word “mines” there was inserted in the Provincial
legislation “or any other mineral.”
The land in question in this action originally formed part
of a land grant made by the Dominion of Canada prior to 1899, to assist in the
construction of the Manitoba and North Western Railway. No patents had been
granted in respect of any of the said lands but land warrants had been issued
and, by an agreement dated May 9, 1899, which was approved by c. 19 of the
Statutes of Manitoba of 1899, warrants for land including this parcel were surrendered
to the Province. By a Dominion Order-in-Council made on May 31, 1901, it was
recited that the railway company had requested that “title be passed for
certain of these lands to the Crown in the right and for the use of the
Province of Manitoba”, that the Government of the Province had forwarded the
warrants for the land for which title had been applied and it was recommended
that title be vested in His Majesty King Edward the Seventh in the right and
for the use of the said Province of Manitoba. Annexed to the order was a list
describing lands which included the land in question. No patents were issued in
respect of any of these lands by the Dominion. The effect of the
Order-in-Council was that the right to the beneficial use of the lands was
appropriated to the Province and became subject to the control of its
Legislature, the land itself being vested in the Crown (St. Catherine’s
Milling and Lumber Co. v. The Queen ).
In 1902, by c. 43, The Real Property Act was
reenacted and the Statute of 1885, as amended, repealed. Section 29 read:—
The Lieutenant-Governor-in-Council may by order direct a
District Registrar to bring under this Act any land belonging to His Majesty in
the right of Manitoba and the filing with a District Registrar of such
Order-in-Council shall in all respects have the same force and effect as the
filing of an application to bring land under this Act.
[Page 329]
Acting under this section of the Act, an Order-in-Council
was made by the Government of the Province on May 13, 1903, directing that
certificates of title do issue to His Majesty the King for lands which included
the lands in question. In pursuance of this direction, a certificate of title
was issued out of the Land Titles Office at Portage la Prairie in the name of
His Majesty the King in the right of Manitoba for the east half of Section 13
in Township 16, Range 10, West of the Principal Meridian. The certificate was
in the terms prescribed by The Real Property Act and there was endorsed
on the face of it a statement that the land was subject by implication to,
inter alia, any subsisting reservation contained in the original grant of this
land from the Crown. Unless the Dominion Order-in-Council above referred to,
which transferred the right to the beneficial use of the lands to His Majesty
in right of the Province, could be described as a grant (and I think it could
not) there had been no grant of this land from the Crown. If it was a grant,
there were no reservations of any kind contained in it.
The purpose of the Province in directing that these
particular lands should be made subject to the provisions of The Real
Property Act is not apparent, nor why, having done so, certificates of
title were issued in the name of His Majesty. The title of the Crown in the
right of the Province to these lands, in the circumstances above described,
could not possibly be questioned, and obtaining certificates of title under the
provisions of the statute could add nothing to the incontestable nature of that
title. The Provincial Lands, Act which was then in force provided for
the disposition of Provincial lands by letters patent only, which would
indicate that it was never contemplated when that statute was passed that
Provincial Crown lands should be made subject to The Real Property Act while
remaining the property of His Majesty. It is due to this having been done and a
certificate of title issued for the lands in question, which would by virtue of
the provisions of The Real Property Act require conveyances to be made
by way of transfer, that the difficulty arises which is responsible for the
present litigation.
The facts as to the transactions in regard to this
particular land following the issue of the certificate of title, so far as it
is necessary to consider them, are as follows:—In
[Page 330]
the year 1901, one Richard Morgan had made application in
writing to the Provincial Lands Department to purchase the east” half of
section 13-16-10” West, which by its terms said that all valuable stone, coal or
other minerals were to be reserved to the Province. In September 1914, Morgan’s
interest in these lands was acquired by one Noble and, upon his completing
payment of the purchase price a transfer in the form required by The Real
Property Act authorized by an Order-in-Council was given on November 10,
1914.
The language of the transfer, so far as it is necessary to
consider it, was as follows:—
His Majesty the King in the right of our Province of
Manitoba being registered owner of an estate in fee simple in possession
subject however to such encumbrances, liens and interests as are notified by
memorandum underwritten or endorsed hereon in all that piece or parcel of land
known or described as follows (describing it and stating the consideration) the
receipt of which sum we do hereby acknowledge transfer to the said William P.
G. Noble all our estate and interest in the said land.
The instrument was executed by the Lieutenant-Governor, the
Attorney-General, the Provincial Secretary and the Acting Provincial Lands
Commissioner, and the Great Seal of the Province affixed. There were no “encumbrances,
liens and interest” underwritten or endorsed on the instrument.
While by the terms of Morgan’s application the minerals were
to be reserved to the Crown, this apparently was ignored or overlooked when the
transfer was given to Noble. It is sufficient for the purpose of disposing of
the present matter to say that thereafter title to this land was transferred
under the provisions of The Real Property Act to various other persons,
that it was sold for taxes and title acquired by the Rural Municipality of
Lakeview, by which it was sold and transferred pursuant to the provisions of
the Act. Eventually, on November 30, 1948, a certificate of title was issued by
the District Registrar at Portage la Prairie, wherein William Hiebert of the
Post Office of Langruth was stated to be seized of an estate in fee simple in
possession:—
subject to such encumbrances, liens and interest as are
notified by memorandum underwritten (or endorsed hereon) in all that piece or
parcel of land known and described as follows:—
the south-half of the south-east quarter of section thirteen
in Township sixteen and Range Ten West of the Principal Meridian in Manitoba.
[Page 331]
There were no encumbrances, liens and interest notified by
memorandum or endorsed on the certificate other than those to which all
certificates of title issued under the Act, unless the contrary be expressly
declared, are deemed to be subject by the terms of s. 60 of The Real
Property Act (R.S.M. 1940, c. 178). In so far as it affects the present
matter, with minor changes in wording which did not alter the meaning, that
section was in the terms of s. 61 of The Real Property Act of 1885.
On August 2, 1950, Hiebert granted a lease of the petroleum,
natural gas and related hydrocarbons within, upon or under the said lands to
one Ted Harris for a term of ten years at a stipulated annual rental. By
assignment, the rights of the lessee under this instrument were subsequently
vested in the respondent company. Upon the company seeking to file a caveat in
the Land Titles Office at Portage la Prairie for the protection of its interest
under the said lease, the District Registrar declined to accept the instrument
on the ground that the company had acquired no interest in the” said lands,
since Hiebert was not the owner of any of the minerals contained therein. The
present proceedings were initiated by the respondent company to establish its
right to the registration of its caveat.
The refusal of the District Registrar to accept the caveat
for registration is based upon the ground that the transfer from the Crown to
Noble was a grant within the meaning of s. 25 of The Provincial Lands Act of
1913 and that, accordingly, by statute any minerals in or under the land
remained the property of the Crown since they were not, in the language of the
section, “expressly conveyed.”
For the respondent, it is contended that the expression “grant”
does not include transfers of land in the statutory form required by The
Real Property Act and that, accordingly, Noble became and Hiebert was on
the date upon which he granted the lease to Harris the owner of the minerals
contained in the land.
It will be seen from the above recital of the legislation
passed by the Dominion and by the Province in dealing with lands surrendered by
the Hudson’s Bay Company that the Province adopted the mode of conveyance
earlier decided on by Parliament for the disposition of Dominion lands. The
grants thus made to those holding Hudson’s
[Page 332]
Bay titles or who might become entitled to conveyances under
the provisions of the Dominion Lands Act of 1872 were to be made by letters
patent and it is to be noted that it was in this manner that the Dominion
conveyed lands under the Act from that time until the year 1950, when the Act
was repealed by the Territorial Lands Act (c. 22). There can, therefore, be no
doubt that when s. 43 was introduced into the Dominion Lands Act, 1883 the
“grant from the Crown” referred to was a grant by letters patent and that that
was the proper interpretation of the expression in that Act until 1908, when
the section in which it occurred was omitted. In the consolidation of that year
(c. 20) other provisions were included dealing with the disposition of lands
containing minerals and there was no counterpart of s. 43.
The Dominion, while conveying lands of the Crown in the
manner specified by the Act followed the lead of the Province in introducing
the Torrens system into the Northwest Territories by c. 15 of the Statutes of
1886. This was the Territories Real Property Act, which was made applicable not
only to the Northwest Territories but to the District of Keewatin and all other
territories of Canada. The Act closely followed the language of The Real
Property Act of Manitoba which had been passed by the Legislature in 1885.
Ss. 61 and 62 of the Act reproduced the terms of the same sections in the
Manitoba Real Property Act. Registration districts were established in the
Northwest Territories where persons who already held title to their lands by
letters patent from the Crown might have their title registered under the
provisions of the new Act. By s. 44 it was provided that whenever any land was
granted in the Territories by the Crown the letters patent, when issued, should
be forwarded to the Registrar of the registration district in which the lands
were situated, to be retained, and a certificate of title granted to the
patentee. Thus, all lands alienated by the Crown or by other owners would
eventually become subject to the provisions of the new statute. That Act was
repealed and replaced by the Land Titles Act of 1894, which did not differ from
it in any material particular. When the Provinces of Alberta and Saskatchewan
were created in 1905, similar legislation of the same name was adopted by them.
There is nothing in any of the Dominion legislation to indicate that it was
ever
[Page 333]
contemplated that, so long as the lands remained the
property of Canada, they would be subject to the provisions of the Act or that
certificates of title should issue to the Crown.
When the Provincial Lands Act of 1887 was passed The Real
Property Act had been in force for two years in the Province of Manitoba.
The Provincial Lands Act, as was the case with all of the Dominion Lands Acts,
provided that the title of the Crown when alienated should be conveyed by
letters patent and the manner in which such grants were to be executed was
defined. There is nothing in it to indicate that it was ever contemplated at
that time that Provincial Crown lands should become subject to the provisions
of The Real Property Act while the title remained in the Crown. The
Real Property Act of 1885 had provided by s. 28 that from the commencement
of the Act all lands unalienated from the Crown in the Province should, when
alienated, be subject to its provisions and by s. 29 that when patents were
issued thereafter they should be deposited with the Registrar General and a
certificate of title issued to the person entitled. This, as in the case of the
Dominion legislation adopted in the year following for the Northwest
Territories, indicated that the Legislature had considered it desirable that in
the course of time lands in the Province purchased from the Crown should be
made subject to the new system. The Act contained nothing of this nature
affecting lands owned by the Crown.
In my opinion, the words “grant from the Crown” in s. 21 of
the Act of 1887 are to be construed in the same manner as those words in s. 43
of the Dominion Lands Act. In accordance with the fundamental rule, it
is in the first instance the intention of the Legislature of 1887 which is to
be determined. There is another principle of statutory construction that the
language of a statute which deals with a genus is generally extended to new
things which are a species of that genus which were not known and could not
have been contemplated by the Legislature when it was passed (Maxwell, 10th Ed.
p. 79). A case illustrating the application of this principle is Attorney-General
v. Edison Telephone Co..
If it could be said that that principle has any application to the differing
manners in
[Page 334]
which title to land may be conveyed, it’s application would
not assist the case of the appellant since the new manner of conveying lands
provided by the Torrens system had been established two years earlier. It is,
of course, elementary that the language of s. 21 is to be construed in its
context and the entire Act considered in endeavouring to arrive at the meaning
to be assigned to the word “grant”. If this be done, it is, in my opinion, a
necessary conclusion that the grants referred to were grants of the only kind
authorized by the statute, namely by letters patent.
There is nothing in the record to indicate that at any time
prior to the year 1903, when the Order-in-Council directed the District
Registrar to issue certificates of title for the Manitoba and North Western
Railway lands in the name of the Crown, any Provincial Crown lands were held in
this manner. While these lands had been thus brought under the Act and
certificates of title issued, the Legislature did not amend The Provincial
Lands Act and the prescribed mode of conveyance continued to be by means of
letters patent. In the case of the land conveyed to Noble, however, since a
certificate of title in the name of the Crown had issued it was apparently
considered necessary to execute the statutory form of transfer. I assume that
the Lieutenant-Governor in Council in authorizing its execution did so under
what were considered the powers given by s. 7.
In the revision of 1913 an amendment to The Real Property
Act (R.S.M. 1913, c. 171, s. 30) provided that all lands in the territory
added to the Province by The Manitoba Boundaries Extension Act, 1912 should
be subject to the provisions of the Act and that, thereafter, no instrument
affecting any of such lands should be registered under the old system. By that
Act the boundaries of the Province had been greatly extended to the north and
east and the provision that not only the lands privately owned in the added
territory but those of the Provincial Crown should be subject to the Act was a
departure from the policy declared by the Provincial Lands Act, 1887. It is to
be noted that in this added territory the right to all minerals was reserved to
the Crown in the right of the Dominion.
The Provincial Lands Act was reenacted as c. 155 in
the 1913 revision. Section 25 of the Act was in the terms of
[Page 335]
s. 21 of the Act of 1887. While various
changes were made, those sections dealing with the manner in which title should
be given to purchasers from the Crown remained unchanged. The lands which had
come to the Province from the land grant to the Manitoba and North Western
Railway Company were at this time subject to the provisions of The Real
Property Act pursuant to the direction contained in the Order-in-Council of
1903, and presumably certificates of title had been issued to the. Crown in the
right of the Province for all of these lands, as had been done in the case of
the lands sold to Noble. As to the lands added to the Province in 1912, no
question of the application of s. 25 could arise since the minerals in them
remained the property of His Majesty in the right of Canada. In these
circumstances and for the same reasons which lead me to conclude that the
expression “grant” in s. 21 of the Act of 1887 referred to conveyances by
letters patent, I am of the opinion that the same meaning should be assigned to
it in the Act of 1913.
I have no doubt that the fact is that the effect of the
action of the Government in directing that the Manitoba and North Western
Railway lands be brought under the Act and certificates of title issued,
without making any change in the language of s. 21 of the Act of 1887 and of
the relevant sections of The Real Property Act, was simply overlooked.
In so far as the Provincial Lands Act is concerned, the oversight was
corrected when that Act was repealed and reenacted by c. 32 of the Statutes of
1930 which, by s. 9, provided that there was reserved to the Crown out of
every disposition of Provincial lands under the Act all mines and minerals.
This was, however, too late to affect the issues in the present matter.
The transfer given by the Crown pursuant to the
Order-in-Council of November 10, 1914, transferred “all our estate and interest
in the said land.” Section 88 of The Real Property Act provided that
every transfer should, when registered, operate as an absolute transfer of all
such rights as the transferor had therein at the time of its execution, unless
a contrary intention be expressed in such transfer or instrument. No such
contrary intention was expressed and, accordingly, the entire interest of the
Crown in the land and all mines, minerals and quarries became vested in the
[Page 336]
transferee upon registration. The certificate of title
issued to Noble on July 25, 1919, declared him to be seized of an estate in fee
simple in possession in the lands in question, subject only to the reservations
to which all certificates of title were subject by implication by reason of the
provisions of s. 78 of the Act of 1913. As in the case of the Act of 1885, the
only reservation which affects this matter was expressed as:—
any subsisting reservation contained in the original grant
of the land from the Crown.
If it be assumed for the purpose of argument that the
transfer from the Crown to Noble was “the original grant of the land from the
Crown” since no patent had ever issued in respect of the land, there was no
reservation in it.
Hiebert’s title was not obtained until 1948. The sections of
The Real Property Act of 1940 which affect the matter do not differ from
those in the Act of 1913 which are quoted at length in the judgment of Adamson
J.A. and need not be repeated. Whether or not the Crown might have impeached
the title of Noble, so long as these lands were registered in his name by
virtue of the fact that he acquired the lands as the assignee of Morgan and the
documents make it clear that it was not intended that the sale of the land to
the latter should include the minerals, this cannot possibly affect the
position of Hiebert. The land had been transferred many times under the
provisions of the Act and that Hiebert had purchased them in good faith and for
value is common ground. His title to the land could be impeached, if at all,
only upon the ground asserted by the appellant, and that claim for the reasons
I have stated is, in my opinion, without foundation.
I am further of the opinion that, even if it were to be
assumed that the contention of the appellant that the grant from the Crown
referred to in s. 21 should be construed as including transfers of land under
the provisions of The Real Property Act, this appeal should fail.
If it was intended that such transfers were to be included,
it must then have been contemplated that the Crown in the right of the
Province, while still retaining ownership of Provincial lands, would bring them
under the new system and that certificates of title would be issued in respect
of them. This, in turn, would mean that when such lands
[Page 337]
were alienated by the Crown, the form prescribed by The
Real Property Act would be employed to effect the transfer. To do this
involved the legal consequences resulting from the provisions of The Real
Property Act. In my opinion, the combined effect of the definition of “land”
in s-s. 1 of s. 3 and of s. 22 of the Act of 1885 was that the expression “land”
in any such transfer includes mines and minerals unless, in the words of s. 22,
“a contrary intention be expressed in such conveyance.” The definition
and s. 22 appeared unchanged in meaning as subsection (a) of s. 2 and s. 88 in
the revision of 1913. In my opinion, when the word “land” was employed in the
transfer to Noble, it was as if the expression as defined in the interpretation
section was written out in full. In this respect, I think the legal effect of
employing the defined word does not differ from the use of the short forms
prescribed by the Short Forms Act (c. 8, R.S.M. 1913). Unless the provisions of
s. 88 are to be ignored, any exception to be effective must have been expressed
in the transfer and there was none such in the transfer to Noble. I am,
therefore, of opinion that the mines and minerals in this land were “expressly
conveyed in such grant”, within the meaning of s. 25 of the Provincial Lands
Act of 1913, if the transfer was a grant.
If this were not the legal effect of these provisions of The
Real Property Act, there would be repugnancy between such provisions and s.
25. As to the legislation of 1885 and 1887, The Real Property Act provided
that “all such right and title as the grantor has therein at the time of its
execution” should pass unless it was excepted in the transfer, while the
Statute of 1887 declared that minerals should not pass unless “expressly
conveyed in such grant.” It is not suggested on behalf of the appellant that,
in view of this obvious repugnancy, since the Provincial Lands Act was passed
two years after The Real Property Act these sections of the latter Act
were impliedly repealed, in so far as they might apply to transfers by the
Crown. The fact that both Acts were re-enacted in the revision of 1913 in
substantially the same form would be, in any event, a complete answer to any
such argument. That this situation would result if full effect were to be given
to the argument
[Page 338]
of the appellant gives further support to the contention of
the respondent that the language of the section was intended to refer only to
conveyances by letters patent.
I would dismiss this appeal with costs.
The judgment of Kerwin, Taschereau and Fauteux JJ. was
delivered by:—
Kerwin J.:—On
November 30, 1948, under the Manitoba Real Property Act, R.S.M. 1940, c. 178,
the District Registrar for Portage La Prairie issued to the respondent, William
Hiebert, a certificate in the usual form that he “is now seized of an estate in
fee simple in possession subject to such encumbrances, liens and interests as
are notified by memorandum underwritten (or endorsed hereon) in all that piece
or parcel of land known and described as follows: “The South-Half of the
South-East quarter of Section Thirteen in Township Sixteen and Range Ten West
of the Principal Meridian in Manitoba”. The relevant part of the only
memorandum underwritten or endorsed reads:—
The land mentioned in a certificate of title shall by implication
and without special mention in the certificate, unless the contrary be
expressly declared, be deemed to be subject to:
(a) Any subsisting
reservation contained in the original grant of the land from the Crown.
That Act and its predecessors provided in Manitoba for what
is generally known as the Torrens System for lands subject to it. The object of
that system is well known and the provisions of the corresponding Alberta
statute, The Land Titles Act, have been considered by this Court in C.P.R.
v. Turta and Hager v. United Sheet Metal Co. Ltd., the
judgments in which appeals are being handed down contemporaneously herewith. By
s. 61 of the 1940 Manitoba Act, the certificate issued to Hiebert is, with
certain exceptions irrelevant to the present appeal, conclusive evidence as
against everyone, including His Majesty, that Hiebert is entitled to the lands
described; and by s. 2(f) :—
(f) “land” means land,, messuages, tenements, hereditaments,
corporeal and incorporeal, of every kind and description, whatever the estate
or interest therein, and whether legal or equitable, together with all paths,
passages, ways, watercourses, liberties, privileges and easements, appertaining
thereto, and all trees and timber thereon, and all mines, minerals and
quarries, unless specially excepted;
[Page 339]
Unless, therefore, s. 25 of The
Provincial Lands Act, R.S.M. 1913, c. 155, which will be discussed later,
requires us to hold otherwise, Hiebert is entitled to the base metals in the
lands described in his certificate. In addition to the authorities referred to
in the various reasons for judgment in the two appeals mentioned, many others
have been cited and considered in the present case but its disposition depends
upon the proper construction and effect of the two statutes.
On August 2, 1950, Hiebert gave to one Ted Harris what is
called a Petroleum and Natural Gas Lease covering his lands. On August 10,
1950, Harris assigned that lease to Superior Oil of California Ltd., which
Company, on August 22, 1950, filed with the District Registrar of the Land
Titles District of Portage La Prairie a caveat claiming an estate or interest
in the lands. The Registrar recorded the caveat but refused to complete the
registration thereof. Having been required in accordance with the statute so to
do the District Registrar, with the approval of the Registrar General, on
January 4, 1952, set forth as the reason for his refusal that the Company had
no estate or interest in and to the lands. On an appeal by the Company and
Hiebert to a judge of the King’s Bench of Manitoba, the District Registrar and
the Attorney General of Manitoba being respondents, it was declared that
Hiebert was the owner of the minerals, except gold and silver, within, upon and
under the lands subject only to the lease of August 2, 1950, assigned to the
Company, and the District Registrar was directed to complete the registration
of the caveat. On appeal by the District Registrar and Attorney General, the
Court of Appeal for Manitoba amended the judgment so as to declare that the
Company was entitled to an interest in the petroleum and natural gas and
related hydrocarbons except coal and valuable stone within, upon or under the
lands, but otherwise affirmed the judgment below.
The District Registrar and Attorney General now appeal and
their position is that the Company has not such an interest because of s. 25 of
The Provincial Lands Act, R.S.M. 1913, c. 155, referred to above, which
section reads as follows:—
25. It is hereby declared that no grant from the Crown of
lands in freehold or for any less estate has operated or will operate as a
conveyance of the gold or silver mines or any other mineral therein, unless the
same are expressly conveyed in such grant.
[Page 340]
This section goes back through several
consolidations of the statutes to s. 21 of the Manitoba Provincial Lands
Act, 1887 and in each case the wording is the same.
The 1913 Act is referred to because it was while it was in
force that a transfer of the lands under The Real Property Act by His
Majesty the King in the right of Manitoba was executed dated November 10, 1914,
and a certificate of title issued under date of July 25, 1919, to one Noble a
predecessor in title of Hiebert. That is, by force of the provisions of the
then current Real Property Act, Noble would have become the owner of the base
minerals while, by s. 25 of The Provincial Lands Act, R.S.M. 1913, c.
155, if applicable, those minerals did not pass because they were not expressly
conveyed.
The title to the lands was originally in the Crown in the
right of Canada but was transferred to His Majesty in the right of the Province
of Manitoba. On May 27, 1901, one Richard Morgan applied to the Department of
Provincial Lands to purchase the lands on a form which stated:— “All valuable
stone, coal or other minerals are reserved by the Province.” That statement of
reservation in the application is mentioned merely as a matter of historical
interest, because, in my view, it does not affect the determination of the
appeal. At that time the land was not under The Real Property Act but
later, pursuant to an order-in-council, a certificate of title, dated May 23,
1903, issued to His Majesty under that Act. Subsequently Morgan quit claimed
his interest in the land to Noble, and upon that being shown to the
satisfaction of the Department, the transfer to Noble of November 10, 1914, was
executed and the certificate of title of July 25, 1919, issued to him. Neither
this nor any subsequent certificate of title contained any reservation of mines
or minerals.
Several arguments were advanced on behalf of the
respondents. First it was contended that in view of the provisions of s. 20 of
the 1887 Act, s. 21 had reference only to lands in which it was known that
mines or minerals existed, s. 20 (being the same in substance as s. 24 of
R.S.M. 1913, c. 155) being in these words:—
20. Lands containing coal or other minerals shall not be
subject to the provisions of this Act respecting sale, but shall be disposed of
in such manner and on such terms and conditions as may, from time to time, be
fixed by the Lieutenant-Governor in Council, by regulations to be made in that
behalf.
[Page 341]
Presumably it was intended to deal administratively with
known mineral lands in a manner different from lands that were thought to
contain no minerals but that circumstance, in my opinion, cannot detract from
the explicit wording of s. 21.
Next it was said that s. 21 has no application to
transactions and certificates of title under The Real Property Act. In
this connection it is to be noted that there was an earlier statute entitled “An
Act Respecting the Acquisition and Sale or Disposal of the Public Lands of the
Province”, being c. 12 of the statutes of 1883. This Act recited that the Government
of Manitoba was entitled to have certain lands transferred to it by the
Dominion Government under certain provisions as to drainage and that Manitoba
held and might acquire other lands, some, or all, of which it might be
necessary or advisable to sell. It then authorized the disposal of any such
land, or any interest therein, by letters patent under the Great Seal of the
Province duly authorized by the signature of the Lieutenant-Governor and the
Secretary of the Province and in such form as should be approved by the
Attorney General.
The Manitoba Provincial Lands Act, 1887 repealed the
Act of 1883 but recited:—
Whereas it is expedient and necessary to make provision for
the administration of the public lands now acquired or which may be hereafter
acquired in any manner whatsoever by the Government of the Province of
Manitoba, whether earned under the Statutes or Orders-in-Council of this
Province, or of the Dominion of Canada relating to the draining of submerged or
swamp lands, or the granting of swamp lands to this Province for public
purposes, lands foreclosed under mortgages or acquired for arrears of. taxes
and all lands that may be or become vested in Her Majesty for the use of this
Province or in any way become the property of this Province.
The Legislature was thus indicating its intention to
legislate with reference to “all lands that may be or become vested in Her
Majesty for the use of this Province or in any way become the property of this
Province.” At that time there were two land registration systems in force in
the Province—one the old system under The Registry Act and the other,
the new, or Torrens System, which first came into force as of July 1, 1885, by
virtue of The Real Property Act of 1885, c. 28. The existence of the two
systems was, of course, well known and in fact, in ss. 32 and 33 of The
[Page 342]
Provincial Lands Act, 1887 reference
is made to the Registrar General (an official under The Real Property Act) as
well as to the registrar of every registration division (an official under The
Registry Act). The lands under both systems were, therefore, in the
contemplation of the Legislature as was also the fact that certain of such
lands had been Dominion swamp lands or Dominion lands to which a railway
company was entitled as a subsidy and the right to which was transferred by the
railway company to the Province.
The third contention was that there was no “grant” from the
Crown to which on its proper construction s. 21 could apply. The word “grant”
is not defined in the Act and in view of the expressed intention of the
Legislature to deal with all lands, there is no difficulty, in my opinion, in
holding that it includes a transfer from the Crown of lands the title to which
it had in its own name by virtue of a certificate of title issued under The
Real Property Act, and the certificate issued to the transferee.
Section 21 is not merely a direction to an official as to what should be
included in a grant (or transfer or certificate) of Crown lands but it is a
specific declaration that gold or silver mines, or any minerals in the lands
are not included unless expressly mentioned. That declaration has the same
effect as if base minerals were expressly excepted in the transfer and as if
the certificate of title issued to Noble bore an endorsement that it was
subject to the provisions of the section. The fact that Hiebert subsequently
secured a certificate of title under The Real Property Act does not
advance his position.
The preceding paragraph incorporates my conclusion on the
last point to be considered. In that connection it is reasonable to infer that
the Legislature dealing with provincial public lands in 1887 had in mind the
provisions of s. 43 of the Dominion Lands Act, 1883:—
43. It is hereby declared that no grant from the Crown, of
lands in freehold or for any less estate, has operated or will operate as a
conveyance of the gold or silver mines therein, unless the same are expressly
conveyed in such grant.
The Manitoba Legislature did not copy this enactment
verbatim but inserted the words “or any other mineral” between “mines” and “therein”.
Just as the word “therein” in s. 43 of the Dominion Act refers to lands so “therein”
in
[Page 343]
s. 21 of the Manitoba statute does not
refer to gold or silver mines but to lands. While this opinion has been arrived
at without reference to what is now stated, it may be noted that when s. 21 was
first enacted, there was a comma after the word “mineral” as well as one after
the word “therein” although in subsequent revisions and consolidations the
comma after “mineral” disappeared.
The appeal should be allowed, the judgment below set aside,
and the refusal of the District Registrar to complete the registration of the
caveat restored. There should be no costs to any party in this Court.
Rand J.:—The
issue in this appeal is whether a conveyance of land by the Province of
Manitoba by means of a transfer under The Real Property Act carried with
it petroleum rights to subsequent purchasers for value to whom certificates of
title were issued; and to appreciate the circumstances in which the question
arises it will be necessary to refer briefly to the early land registration law
of Manitoba.
Prior to 1885 the system in effect was similar in its
general provisions to those of the eastern provinces under which, through
public registers, notice was given to all persons of deeds or other conveyances
of estates or interests in lands lying within the registry district.
In 1885 The Real Property Act was passed setting up a
scheme of titles which, in its general conceptions, is known as the Torrens
system, and under which, by means of what is called a certificate of title, the
ownership of any interest-in land is, by the force of the statute, declared to
be as therein set forth. In other words, and subject to certain qualifications,
the certificate constitutes the conclusive evidence of the title declared by
it.
By the terms of the legislation creating the province of
Manitoba, all public lands were retained by Canada, but in 1885 an agreement
was come to by which the federal government agreed to convey to the province
what were known as swamp lands. This was followed in 1887 by the enactment of
The Provincial Lands Act, c. 21 of the statutes of that year, which,
superseding c. 12 of the statutes of 1883, created a department for the
management and sale of pro-
[Page 344]
vincial lands, to be presided over by a member of ‘the
executive council known as the Provincial Lands Commissioner. The recital to
the Act declared it to be.
expedient and necessary to make provision for the
administration of the public lands now acquired or which may be hereafter
acquired in any manner whatsoever by the government of the Province of
Manitoba, whether earned under the Statutes or Orders-in-Council of this
Province, or of the Dominion of Canada relating to the draining of submerged or
swamp lands, or the granting of swamp lands to this Province for public
purposes, lands foreclosed under mortgages or acquired for arrears of taxes and
all lands that may be or become vested in Her Majesty for the use of this
Province or in any way become the property of this Province.
Special provisions were made relating to mining lands. By s.
20 lands containing minerals were not to be subject to the provisions of the
Act respecting sale, but should be disposed of in such manner and on such terms
and conditions as might, from time to time, be fixed by regulations made under
Order in Council. S. 21 declared that
no grant from the Crown of lands in freehold or for any less
estate, has operated or will operate as a conveyance of the gold or silver
mines or any other mineral, therein, unless the same are expressly conveyed in
such grant.
This later became s. 25, R.S.M. 1913, c. 155.
Under date of May 31, 1901, railway subsidy lands to the
extent of 185,000 acres were transferred by Order in Council of the Dominion
government to the province, as nominee of the railway company entitled to them.
On May 13, 1903, by a provincial order in council made under s. 29 of c. 43 of
the statutes, 1902, The Real Property Act of that year, the lands were
brought under that Act and certificates of title were issued to the Crown
accordingly. As of May 27, 1901 the land here in question, which was included
within those so dealt with, became the subject of an application to purchase,
one of the terms of which was that the minerals would be reserved to the
province. The purchase money was ultimately paid in full and the interest of
the purchaser transferred to one Noble to whom in 1914, as assignee, a transfer
of all the estate and interest of the Crown in the land, under The Real
Property Act, was executed. This was registered in 1919 and a new
certificate of title issued. There is no specific mention of minerals either in
the transfer or the certificate, but the latter was made subject to all of the “reservations
contained in the original grant from the Crown.” On subsequent conveyances and
[Page 345]
a lease of petroleum rights the respondents rest their
claim. The precise questions are, then, whether the transfer of 1914
constitutes a grant of the land within the language of s. 21 of The
Provincial Lands Act, and whether the minerals are, by force of that
section, to be deemed to have been reserved from that instrument and all
succeeding instruments.
Freedman J. at trial held that, as against the original
transferee Noble, the minerals, by the effect of the section, did not pass, but
that the purchasers from Noble, through force of the provisions of The Real
Property Act, were entitled to the fee simple interest in the land declared
in the certificate of title issued in 1919. On appeal this conclusion was
unanimously affirmed, although the reasoning of the members of the court was
not entirely the same nor, as between themselves, was it identical.
That the conveyance by way of transfer is a grant within the
meaning of s. 21 does not, in my opinion, admit of any substantial doubt. The
technical meaning of the word “grant”, so far as it relates to the conveyance
of land, is an instrument under seal expressed in language appropriate at
common law to the creation or transference of estates and interests in land.
Words of limitation, for instance, were necessary to an estate in fee ; but,
apart from the language, the essential formality was the seal. Such grants were
originally confined to incorporeal interests and those in expectancy;
conveyance of the present freehold required livery of seisin.
The argument of the respondent that the word “grant” in s.
21 does not include a transfer assumes that there is something of a special
nature in what is known as a “patent”. This is a term signifying what is more
properly denominated “letters patent”. These describe an instrument which,
bearing the imprint of the Great Seal, and in language apt to its purpose, is
open for all to see as contradistinguished from a letter-claus, a close letter,
so-called because it is commonly sealed up and made private with the royal
signet or privy seal: Wharton’s Law-Lexicon, 10th Ed., pp. 452-3.
The transfer of 1914 was executed under the Great Seal of
the province and attested by the hand of both the Lieutenant-Governor and the
Deputy Commissioner of
[Page 346]
Lands. It is adequate to the purposes of a conveyance in fee
under The Real Property Act by language which supersedes that of the
common law, and at the same time it satisfies all the requirements of letters
patent.
On a familiar principle, the Crown could, apart from the
section enacted in 1902, have availed itself of the provisions -of The Real
Property Act to bring Crown lands under the new system. It seems,
therefore, clear that the objects of The Provincial Lands Act, providing
as it does for the entire administration of Crown lands and contemplating the
bringing of Crown lands under the general statute, would be defeated were it to
be limited in its application to lands held and disposed of by the Crown as at
common law. The administration of so important a natural resource looked
obviously to the entire land law as available for its functioning and such a
restriction upon its scope as is now suggested must be rejected.
I can see no ground for any doubt of the effect of s. 21: it
withdraws all minerals from the operation of grants in any form unless they are
mentioned by express language; its purpose was, obviously, to prevent the
possibility of their conveyance when that was not specifically intended, to
conclude, in fact, any question of the nature of that which has arisen in this
case. It has the same effect as if its language were printed on every transfer
executed by the Crown. For the purposes of ownership by the Crown, the minerals
were severed from lands as fully as the precious metals are at common law.
In the Court of Appeal it is suggested that The Real Property
Act is a paramount statute and that its provisions, being inconsistent with
s. 21, override it. I confess to a difficulty in appreciating the soundness of
that suggestion. The statute of 1887 covers a special interest of the province
and on ordinary principles of interpretation it would prevail over any general
enactment. It is conceded, as I understood it, that s. 21 would apply to a
grant of provincial lands not then governed by The Real Property Act. In
that case, and whether the land is thereupon automatically or voluntarily
brought under that Act, if the result is as claimed, the section is completely
nullified except as against the first grantee. Such a result would be unique in
the history of legislation. The two statutes must obviously
[Page 347]
be read together, and so read it is seen to be the law of
the province that from every grant of Crown lands the mineral rights are
reserved unless in the instrument they are expressly declared to be conveyed.
How it can be taken that such an unequivocal declaration of the legislature can
be written out of provincial grants and off the statute book by interpreting a
general law which speaks of the “reservations contained in the original grant
from the Crown” as meaning, in effect, “made by way only of express stipulation
in the grant”, is a proposition for which, to say the least, no authority has
as yet been cited.
Since, then, the certificate of title on its face contains a
reference to the reservation in the original grant, in this respect simply
incorporating the provision of The Real Property Act itself, and since
through the operation of s. 21 the minerals were reserved from the transfer of
1914 as the original grant, the title to these interests did not pass from the
Crown. All succeeding certificates were, likewise, subject to that reservation.
I would therefore allow the appeal and direct an order
dismissing the appeal of the respondents from the refusal of the District
Registrar to complete the registration of caveat recorded on the 22nd of
August, 1950, as No. 27348. There will be no costs to any party in this Court.
Kellock J.:—The
lands in question were vested in the province by order of the Governor-General
in Council of the 31st of May, 1901. On the 27th of May following, one Morgan
made application to purchase, by the terms of which “all valuable stone, coal
or other minerals” were reserved by the province. On May 13, 1903, an order of
the Lieutenant-Governor in Council was passed directing that a certificate of
title should issue to His Majesty in the right of the province, which was
accordingly issued on May 23 following.
On November 12, 1914, the Crown executed a transfer of the
lands under The Real Property Act in favour of one Noble, who had, on
the previous September 26, obtained a quit claim of Morgan’s rights. The
transfer purported to convey “all our estate and interest in the said land”. On
July 25, 1919, Noble, having completed his payments,
[Page 348]
obtained a certificate of title to the lands for “an estate
in fee simple in possession”. By endorsement the certificate was made subject,
inter alia, to
1. Any subsisting reservation contained in the original
grant of this land from the Crown.
Ultimately the lands became vested in the respondent
Hiebert, to whom was issued a certificate of title in the same form as that to
Noble. The respondent company claims under Hiebert.
The contention of the respondents, which prevailed in the
courts below, is that they are entitled as against the appellant to the
petroleum and natural gas in or under the land in question. The appellant
submits, on the contrary, that by reason of s. 21 of the Provincial Lands Act,
50 Vic., c. 21, title to the minerals in or under the lands, did not at any
time pass from the Crown. That section is as follows :
It is hereby declared that no grant from the Crown of lands
in freehold or for any less estate has operated or will operate as a
conveyance of the gold or silver mines or any other mineral therein, unless the
same are expressly conveyed in such grant.
The respondents argue in the first place that the transfer
to Noble was not a “grant” from the Crown within the meaning of the section. It
is said that the Provincial Lands Act had in view the old registry system only,
and not the land titles system provided for by The Real Property Act, and
that “grant” in s. 21 means letters patent.
The Real Property Act had been passed two years prior
to the Provincial Lands Act as c. 28 of the Statutes of 1885 and there is express
reference in ss. 32 and 33 of the later statute to the Registrar-General under The
Real Property Act, which is of itself sufficient to render it impossible to
say that the later statute was passed having in view only the old registration
system.
I am quite unable to accept the argument that the word “grant”
in s. 21 of the Provincial Lands Act 1887 has the limited meaning for which the
respondents contend. In my view the whole purport of that Act, including its
recital, is opposed to any such construction. It may be added that the statute
employs the word “patent”, e.g., in ss, 26 and 27. It cannot therefore be said
that when the Legislature uses the one word it is necessarily synonymous with
the other.
[Page 349]
It is next said for the respondents that the word “therein”
in s. 21 of The Provincial Lands Act refers back to the word “mines” and
not to the word “lands”. Having regard to the section immediately preceding, it
is impossible, in my view, with respect, to agree with this contention or to
apply the ejusdem generis rule to the words “or any other mineral”. It
is provided by s. 20 that “lands containing coal or other minerals” shall not
be subject to sale under the statute but shall be disposed of under regulations
to be made by the Lieutenant-Governor in Council. It is plain, I think, that
the Legislature did not have in contemplation in either section anything less
than all minerals.
The respondents further contend that by reason of the
statutory definition of “land” in s. 2(a) of The Real Property Act (R.S.M.
1913, c. 171)’ and s. 79 of that statute, every transferee from Noble obtaining
a certificate of title obtained title to the “land” therein described, including
the mineral. By the terms of s. 79, however, as well as by s. 78, to which the
former refers, the respondents are forced back to a consideration of the
original grant from the Crown, which instrument, in its interpretation, is
subject to the provisions of s. 21 of the Provincial Lands Act. In the absence
of express words conveying the minerals, the language of the grant is, by this
section, required to be read as reserving them. There is accordingly a “subsisting
reservation contained in the original grant” within the meaning of s. 78(a) of The
Real Property Act.
I would therefore allow the appeal. There should be no costs
in this court.
Estey J.
(dissenting):—It is the. contention of the appellant that petroleum and natural
gas, admittedly base minerals, have been at all times material hereto the
property of the Crown by virtue of s. 25 of The Provincial Lands Act (R.S.M.
1913, c. 155), while the respondents maintain that, as there was no express
reservation in the original transfer from the Crown, these passed to the
transferee and were not reserved by s. 25. Section 25 reads as follows:
25. It is hereby declared that no grant from the Crown of
lands in freehold or for any less estate has operated or will operate as a
conveyance of the gold or silver mines or any other mineral therein, unless the
same are expressly conveyed in such grant.
[Page 350]
This section was enacted as s. 21 of the first Manitoba
Provincial Lands Act, 1887 (S. of M. 1887, 50 Vic., c. 21).
At all times material hereto the relevant statutory
provisions are contained in the Revised Statutes of Manitoba, 1913, and, unless
otherwise specially mentioned, the citations of statutes are to that revision.
The land here in question (E½ of 13-16-10 W.P.M.) was, on
July 25, 1919, transferred, without any express reservation as to minerals,
from His Majesty in the right of the Province of Manitoba to William P. G.
Noble. Counsel for the appellant, however, contends that under the foregoing s.
25 petroleum and natural gas remained the property of His Majesty and
subsequent transferees have taken subject thereto. Therefore, when the present
registered owner, William Hiebert, one of the respondents, under date of August
2, 1950, executed a lease of the petroleum and natural gas in the said land to
Ted Harris he purported to lease that which he did not possess. It follows,
under this submission, that neither Ted Harris nor his
assignee, the respondent Canadian Superior Oil of California, Ltd. (hereinafter
referred to as the respondent oil company) obtained any rights to the said
petroleum and natural gas and when the respondent oil company presented a
caveat to the Registrar of the Land Titles District of Portage la Prairie based
upon the said lease and assignment thereof registration was properly refused.
The respondents’ contention is that the word “grant” in s.
25 does not apply to transfers under The Real Property Act and, in any
event, that s. 25, when properly construed, applies only to gold and silver
mines. Therefore, the Crown, under the transfer, without any express
reservations, conveyed to Noble the mines and minerals other than gold and
silver mines.
An appeal from the Registrar’s refusal was allowed by Mr.
Justice Freedman, who directed registration of the caveat. In the Court of
Appeal the order for registration was varied to read:
It is declared that the plaintiff, Canadian Superior Oil of
California, Ltd., is entitled to an interest in the petroleum, natural gas and
related hydrocarbons, except coal and valuable stone within, upon or under the
Land described in Certificate of Title No. 69899, as set out in the lease from
the plaintiff, Hiebert to Ted Harris, dated the 2nd day of August 1950, which
said lease was assigned by the said Harris to the plaintiff Canadian Superior
Oil of California, Ltd.
[Page 351]
The said E½ of 13 was included in a block of land vested in
His Majesty, the administration of which was transferred to the Province of
Manitoba by a Dominion Order-in-Council dated May 31, 1901. A provincial
Order-in-Council dated May 23, 1903, placed this land under The Real
Property Act and as of that date a certificate of title covering the said
E½ of 13 was issued under that statute in the name of His Majesty The King in
the right of the Province of Manitoba.
The Real Property Act of 1885 introduced into the
province the Torrens system of land registration. Not all of the land was
brought under that system and thereafter Manitoba had two systems of land
registration, the one under The Lands Registration Act of Manitoba (Cons. S.M.
1880, c. 60) and the other under The Real Property Act of 1885, which
are, for convenience, referred to as the old and new system respectively.
That The Real Property Act of 1885 (S. of M. 1885, c.
28) was enacted in respect of registration of land is made clear by its
preamble, which reads:
Whereas, it is expedient to give certainty to the title to
estates in land in the Province of Manitoba, and to facilitate the proof
thereof, and also to render dealings with land more simple and less expensive;
Two years after the enactment of The Real Property Act the
Legislature enacted the Manitoba Provincial Lands Act, 1887 (S. of M.
1887, c. 21), including s. 25 (then s. 21). The intent and purpose of the
Legislature in enacting the latter is evidenced by its preamble: (See ante p.
327).
It will, therefore, be observed that the Legislature in 1885
set up a new land registration system and in 1887 provided for the
administration of the public lands which had been, or might thereafter be
acquired by the province. The Provincial Lands Act, 1887 did not, nor
did it purport to alter or amend any statutory provision relative to
registration under either the old or the new system. These statutes, The
Real Property Act and The Provincial Lands Act, were enacted for
distinct and separate purposes and, like other statutory enactments of the same
Legislature, should be construed, so far as the language thereof may reasonably
permit, to avoid contradiction or repugnancy.
[Page 352]
Then, referring particularly to the land here in. question,
a provincial Order-in-Council of November 10, 1914, directed that a transfer be
“executed on behalf of His Majesty, the King, in the right of the Province of
Manitoba, by the Honourable the Provincial Lands Commissioner, to … William P.
G. Noble.” This Order-in-Council made no reservation of “mines, minerals and
quarries.” The transfer made no reservation, was subsequently registered and,
under date of July 25, 1919, a duplicate certificate of title was issued to
Noble under The Real Property Act without any reservation as to “mines,
minerals and quarries.” At that time the expression “land” was defined in The
Real Property Act as follows:
2. In this Act, and in all instruments purporting to be
made, executed or registered thereunder, unless the context otherwise
requires,—
(a) the expression “land” means
and includes land … together with … all mines, minerals and quarries, unless
any such are specially excepted.
If, therefore, this transfer be construed under the
provisions of The Real Property Act, there would seem to be no question
but that the mines and minerals passed to Noble.
The appellant, however, submits that s. 25 constitutes a
statutory exception applicable to all Crown lands and, therefore, to the land
here in question, though it was placed under The Real Property Act. That
the Legislature intended the provisions of The Provincial Lands Act should
apply to the administration of all Crown lands is apparent from the recital,
which states that it is applicable to “all lands that may be or become vested
in His Majesty for the use of this Province or in any way become the property
of this Province.” This intention finds further support in the general nature
of the operative provisions. It would, therefore, appear that The Provincial
Lands Act applies to all the land the property of His Majesty in the right
of Manitoba, irrespective of which system it may be registered under.
The land here in question was registered under The Real
Property Act before the transfer from His Majesty to Noble was given. When
so registered, that statute contemplated the land would be conveyed by a
transfer (s. 86) rather than by grant; Moreover, as already stated, an
Order-in-Oouncil directed the Provincial Lands Commisisoner, who was in charge
of the administration of The Provincial Lands
[Page 353]
Act, to issue, not a grant, but a transfer of the
land to Noble. It is not suggested this method of conveyance was an exception
and it may be assumed that in respect to Crown lands, registered as this was
under The Real Property Act, conveyances were normally made by transfer.
That was the form of conveyance contemplated by the Legislature under that Act
and the Crown complied therewith, the advisers evidently being of the opinion
that the word “grant” in s. 25 included a transfer. In fact, that would appear
to be the reasonable conclusion. The Crown, at least in this instance and, it
may be assumed, generally, administering its land under The Provincial Lands
Act, made its conveyance thereof according to whether it was under The
Lands Registration Act or The Real Property Act and, if under the
latter, the conveyance was by transfer. In these circumstances the contention
that a conveyance by way of grant would not include a transfer under The
Real Property Act cannot be accepted. While the phrase “grant from the
Crown” may be generally taken to mean Letters Patent from the Crown (North
Cypress v. C.P.R. ;
Rex v. C.P.R. ,
it does not follow that the word “grant” has any exact or well defined meaning
in law. When, as here, the title is in His Majesty under a statute which
contemplates that a conveyance should be made by transfer, it must follow that
the term “grant” in legislation providing for the administration of such land
must be read to include the word “transfer,” as that word is used in The
Real Property Act. In this connection it may be observed that the word “grant”
is not defined in The Provincial Lands Act, but is defined in The
Real Property Act, s. 2(q). This definition as phrased is not
exhaustive, but does contemplate a conveyance from the Crown in the right of
the province and does not preclude the inclusion of a transfer made for that
purpose.
Section 29 of The Real Property Act of 1885 contemplated
that whenever the Crown granted land it would be by way of a patent; that a
grantee desiring his land to be placed under The Real Property Act would
deposit his patent with the Registrar under the latter Act, who would then
issue to the grantee a certificate of title. That was not done in this case and
no explanation appears in the
[Page 354]
record as to why that course was not
followed, rather than to have the block of land placed by Order-in-Council
under The Real Property Act. In these circumstances the conveyance from
the Crown was the transfer to Noble and must be accepted as “the original grant
of the land from the Crown” within the meaning of s. 78(a) of The Real
Property Act.
In considering the respective contentions as to the
construction of s. 25, it is important to observe that in both s. 3(1) of The
Real Property Act of 1885 and s. 1 of the Manitoba Provincial Lands Act,
1887 “land” is defined to “extend to and include … mines, minerals and
quarries appertaining thereto … unless … specially excepted.” Both of these
definitions are, in all relevant respects, carried forward in the respective
statutes in the revision of 1913. Under these definitions of “land” a
conveyance such as that to Noble would include the mines and minerals because
they were not specially excepted.
Section 25 (then s. 21) as enacted in 1887 was, except for
the insertion of the words “or any other mineral,” identical with s. 43 of the
Dominion Lands Act as enacted in 1883 (S. of C. 1883, 46 Vic., c. 17). S. 43 was
enacted in 1883 to clarify the provisions of an earlier s. 36 (S. of C. 1872,
35 Vic., c. 23) and to make it clear that gold or silver mines passed from the
Crown to a grantee only when expressly conveyed. In Reference re Precious
Metals .
At that time, and when the abovementioned s. 25 was enacted in 1887, grants
from Her Majesty in the right of the Dominion of Canada conveyed the base
metals, unless they were expressly reserved.
The practice of the Government of Canada in the disposition
of Crown lands would be well known to the members of the Legislature when
enacting s. 25 (then s. 21) in 1887. It would also be present to their minds
that two years earlier the Legislature had introduced into Manitoba the Torrens
system “to give certainty to the title to estates in land” and “to render
dealings with land more simple and less expensive”; that in doing so it
provided in s. 62 of The Real Property Act of 1885 (s. 79 in the 1913
revision) that “every certificate of title granted under this Act … shall … so
long as the same remains in force and uncancelled
[Page 355]
under this Act, be conclusive evidence at law and in equity
as against Her Majesty and all persons whomsoever” and further by s. 61 (s. 78
in the 1913 revision) that the land mentioned in “any ‘certificate of title
granted under this Act, shall, by implication, and without any special mention
in the certificate of title, unless the contrary be expressly declared, be
deemed to be subject to:— (a) any subsisting reservations contained in the
original grant of said land from the Crown.” In view of the established
practice and the purpose of the Torrens system it would seem that, if the
Legislature had intended to effect such a change as the appellant here contends
for in respect to the conveyance of mines and minerals by the Crown and to
create an exception to its statutory definition of “land” as contained in The
Real Property Act, it would have used language more clearly expressive of
such an intention and would probably have amended s. 61 (s. 78(a) in the 1913
revision), in order that one searching the title might be directed not only to
the original grant but to the statutory exception, if such were intended.
In this connection it is significant that in s. 25 no
mention is made of mines or minerals in relation to base metals, but only the
words “or any other mineral” are inserted.
Moreover, I am in agreement with Mr. Justice Coyne that the
foregoing is in accord with the grammatical construction of the section. It
must be assumed that the words “or any other mineral” were carefully inserted
and due regard must be had to their meaning and effect in the section when read
as a whole. They are preceded by the words “gold and silver mines” and followed
by the word “therein.” The draftsman would realize that, while the word “therein”
referred to “land” before the insertion of these words, that thereafter it
would be understood to refer to “mines.” As stated by Lord Wensleydale in Grey
v. Pearson
:
… in construing wills and indeed statutes, and all written
instruments, the grammatical and ordinary sense of the words is to be adhered
to, unless that would lead to some absurdity, or some repugnance or
inconsistency with the rest of the instrument …
Not only is there no absurdity or repugnance involved in
this construction, but it avoids any conflict between the definition of “land”
in s. 2(b) and the provisions of s. 25.
[Page 356]
Moreover, in so far as punctuation may be relevant it may be
noted that as enacted in 1887 a comma was placed both before and after the word
“therein.” In 1891 the first comma was deleted. This would but emphasize that
the word “therein”, after the insertion of the words “or any other mineral”,
was intended to refer to “mines”.
While the Legislature had in 1883 enacted a lands act
relative to the disposition of Crown lands, this enactment of 1887 was the
result of a more thorough and exhaustive study of the problems associated
therewith and no doubt the attention of the Legislature would have been
directed to the possible presence of other minerals in gold and silver mines.
Their presence in such mines had caused considerable difficulty after The
Mines Case in 1568, 1 Plow. 310, and which had been the subject of
legislation thereafter, and inserted these words with the intent of making it
clear that any other mineral found in gold and silver mines would be treated in
any conveyance as part thereof. That such was the intention of the Legislature
finds support in the conflicts already discussed, the absence of any reference
to mines and the practice of the Government of Canada.
It, therefore, follows that mines and minerals, apart from
gold and silver, were transferred to Noble and had passed by successive
transfers to William Hiebert, who gave a valid lease to Ted Harris, which the
latter assigned to the respondent oil company.
The foregoing is not affected by the fact that the agreement
between the Crown and Morgan, who originally purchased the land here in
question, contained a provision that “all valuable stone, coal or other
minerals are reserved by the Province.” In 1914 Morgan assigned his agreement
to Noble. The foregoing provision does not appear to have been again mentioned
and is not included in the Order in Council authorizing the transfer to Noble,
the transfer or the certificate of title issued to Noble. In other words, the
last three documents were executed without any reservation of mines and
minerals. It may well be that while the title remained with Noble rectification
may have been possible. Noble, however, transferred the land to another in 1921
and, after further transfers, it became the property of the present registered
owner, William Hiebert, to whom a certificate of title was issued. The latter,
under s. 79 of The Real Property Act, holds a certificate of title as “conclusive
[Page 357]
evidence at law and in equity as against His Majesty and all
persons whomsoever that the person named in such certificate is entitled to the
land described therein for the estate or interest therein specified.” There are
certain exceptions to this general statement in s. 79, but it is not suggested
that William Hiebert holds his title subject to any of these.
The appeal should be dismissed and the judgment of the Court
of Appeal should be affirmed.
Cartwright J.:—I
agree with the reasons of my brothers Kerwin, Rand and Kellock. I wish,
however, to add some observations as to three of the many points which were
argued before us. I shall refer to the relevant sections of The Provincial Lands
Act and of The Real Property Act as they appear in the Revised
Statutes of Manitoba, 1913.
The first argument with which I wish to deal may be
summarized as follows. It is said for the respondents that, assuming that s. 25
of The Provincial Lands Act applied to the transfer from the Crown to
Noble, such transfer, by the combined effect of ss. 88 and 2(a) of The Real
Property Act, did expressly convey to Noble all minerals in the lands
described in the transfer. It is said, (i) that the transfer should be read as
if instead of the word “land” the words of the definition in section 2(a) were
written out in full so that the operative words would read:—
… do hereby … transfer to the said William P. G. Noble all
our estate and interest in the said land, messuages, tenements, hereditaments,
corporeal and incorporeal, of every kind and description, whatever the estate
or interest therein may be and whether legal or equitable, together with all
paths, passages, ways, watercourses, liberties, privileges and easements,
appertaining thereto, and all trees and timber thereon, and all mines,
minerals, and quarries, unless any such are specially excepted;
(ii) that, by force of s. 88, this transfer when
registered operated as an absolute transfer of all such right and title as the
transferor (that is His Majesty in the right of Manitoba) had in the land
therein described at the time of its execution unless a contrary intention be
expressed in such transfer; (iii) that in such transfer nothing was specially
excepted and no contrary intention was expressed; (iv) that the transferor had
at the time of the execution of the transfer the sole right and title to the
land and the minerals; and therefore (v) the minerals were expressly conveyed
in the transfer within the meaning of s. 25 of The Provincial Lands Act.
[Page 358]
There appear to me to be several obstacles in the way of
this argument.
Dealing first with the effect of s. 2(a), it
will be observed that by its terms the definition of “land” is carried into the
act and into instruments purporting to be made under the act subject always to
the proviso “unless the context otherwise requires”. The Real Property Act and
The Provincial Lands Act are in pari materia and for purposes of
construction must be read together. When the instrument to which . it is sought
to apply the words in s. 2(a) of The Real Property Act is a grant from
the Crown of lands in freehold which does not expressly convey the minerals
therein then the context does otherwise require. Even if this were not so and
the words of the definition should be taken as being written into. the transfer
the respondents would then be confronted with the concluding words of the
definition, “unless any such are specially excepted”, and, the transfer being a
grant from the Crown which does not expressly convey the minerals, the minerals
are, by force of s. 25 of The Provincial Lands Act, “specially excepted”.
Dealing next with the effect of s. 88, it must first be born
in mind that, as is pointed out by my brother Rand, the effect of s. 25 of The
Provincial Lands Act is that for the purposes of ownership by the Crown
minerals are severed from lands as fully as the precious metals are at common
law and are withdrawn from the operation of grants from the Crown in any form
unless they are mentioned in express language. Section 88 deals not with the
description of the land but rather with the nature of the estate which a transfer under the act operates to convey and dispenses with the
necessity of words of limitation, which would have been required at common law,
to effect a transfer of an estate in fee simple. Under the transfer from the
Crown to Noble all the right and title of the Crown in the lands therein
described passed to him, but the lands therein described were the lands without
the minerals which were severed as above set out and formed no part of the
subject matter of the transfer.
On this first point I am in agreement with Freedman “J.,
when he says:—
… I have reached the conclusion that Sec. 25 of The
Provincial Lands Act was a declaratory enactment, creating a statutory
reservation of mineral rights in favor of the Crown, and that such reservation
would not
[Page 359]
be extinguished, as against a grantee from the Crown, except
by an express conveyance of mineral rights eo nomine. I hold that when
the Crown, using the form of transfer prescribed by The Real Property Act,
purported to transfer “all our estate and interest in the said land,” it did
not divest itself of mineral rights, because mineral rights were not expressly
named or mentioned in the transfer. For the Crown to lose the mineral rights
which were reserved to it by Sec. 25 of The Provincial Lands Act, the same
would have to be “expressly conveyed in such grant”, otherwise the concluding
words of Sec. 25 are without meaning. The transfer being silent on the subject
of mineral rights, the statutory protection afforded by Sec. 25 of The
Provincial Lands Act operated in favor of the Crown.
The second argument with which I wish to deal is one which
found favour with Freedman J., that although the transfer to Noble did not
transfer the minerals to him but left the title to them in the Crown he was
able to give a purchaser in good faith and for value a title to the minerals.
This argument is based primarily on s. 79 of The Real Property Act which,
it is said, makes the certificates of title granted to Noble and to subsequent
purchasers “conclusive evidence … as against Her Majejsty … that the person
named in such certificate is entitled to the land described therein”. The
difficulty in accepting this argument is that s. 79 expressly preserves the
right of any person to shew that the land described in the certificate is
subject to any of the exceptions or reservations mentioned in s. 78, the first
of which is:—
(a) any subsisting reservation contained in the original
grant from the Crown.
In my view the effect of these provisions is that a
certificate of title issued under The Real Property Act assures to the
holder thereof the title to the land therein described which was conveyed by
the original grant thereof from the Crown and nothing more. Another way of
expressing this is that the purchaser from a holder of a certificate of title
who relies on such certificate is by the express terms of the certificate and
of ss. 78 and 79 of The Real Property Act put on inquiry as to, and
affected with notice of, the terms of the original Crown grant and obtains
title to whatever was conveyed by such grant but not to anything withheld
thereby. On looking at the transfer to Noble, which is in this case the
original grant from the Crown, it at once appears that as it is silent as to
minerals they were not conveyed. Indeed, insofar as this particular point in the
argument is concerned, ex hypothesi the transfer to Noble
[Page 360]
did not convey the minerals. While the retaining of the
title to the minerals by the Crown might be more accurately described as an
exception than as a reservation I think that on a reading of both acts together
it appears that the word “reservation” in ss. 78 and 79 of The Real Property
Act is not used in a narrow technical sense but is wide enough to cover the
retention of the title to the minerals by the Crown. Such reservation is
clearly a subsisting one. It is also, in my opinion, “contained in” the
original grant from the Crown, as the effect of that grant is to convey the
lands without the minerals to Noble and so to retain the minerals in the Crown.
The third argument which I wish to mention is that the
respondent’s case is assisted by the fact that when a certificate of title was
issued to Noble the certificate of the Crown in regard to these lands was
cancelled “in full”. This fact appears to me to be irrelevant. If the views
which I have expressed above are correct Noble’s certificate did not, and the
certificate now held by Hiebert does not, purport to state that the holder
thereof is entitled to the minerals in the lands therein described. The
cancellation of the Crown’s certificate “in full” was an error and can be
corrected. This error does not assist the respondents because on their own
documents of title they are unable to make out title to the minerals.
I wish to add one further observation of a more general
nature. If it should appear that certain provisions of The Real Property Act
cannot be reconciled with s. 25 of The Provincial Lands Act then,
since the last mentioned section is a special provision clearly designed to
prevent the possibility of the conveyance of minerals in a grant of lands from
the Crown unless expressly conveyed eo nomine, it must prevail over the
inconsistent provisions in The Real Property Act which deals generally
with the effect of all transfers of land under that Act. Generalia
specialibus non derogant.
I would dispose of the appeal as proposed by my brother
Kerwin.
Appeal allowed. No costs.
Solicitors for the appellant: A. E. Hoskin and
John Allen.
Solicitors for the respondents: Maclnnes,
Burbidge, Hetherington, Allison, Campbell & Findlay.