Court of Appeal Clarifies Vesting Orders on Gross Overriding Royalties
In the recent decision of considerable interest to the mining industry and the bankruptcy bar, Peter Roy and Sean Grayson were retained on the second half of the appeal to represent the appellant, 2350614 Ontario Inc. who held a Gross Overriding Royalty in property under receivership. In the most recent decision (Third Eye Capital Corporation v. Ressources Dianor Inc./Dianor Resources Inc., 2019 ONCA 508) the the Court of Appeal clarified the test for extinguishing a parties interest in land though a vesting order. It was determined that 235′s GOR ought not to have been extinguished by a vesting order in first instance due to the nature of 235′s interest being a GOR that ran with the land, and because there was an absence of any agreement allowing for a competing priority.