This case involved a dispute between siblings over the interpretation of a settlement agreement and its impact on the ownership of special shares in a privately held company, Kalber Developments Incorporated (Kalber). Marvin and his corporation, Y.A.D. Investments Limited (YAD), brought an application seeking a declaration of rights under a settlement agreement between Marvin and his sister Brenda. Marvin and Brenda agreed to settle all litigation between them and that Brenda would transfer Marvin special shares in a family company distributed to her under their mother’s will. Marvin and Brenda’s other sibling Joseph disputed the settlement agreement and objected to the transfer of special shares from Brenda to Marvin.
The court accepted Marvin’s legal position that privity of contract applied in the circumstances and found that Joseph was not a party to Brenda and Marvin’s settlement agreement and therefore could not claim any benefit arising from it, nor could seek to interfere with the terms of the settlement.
The court also accepted Marvin’s alternative argument that principles of contractual interpretation barred Joseph’s position.
The Court granted Marvin and YAD’s application and fixed costs in the amount of $65,000.
Marvin Rubner and Y.A.D. Investments Limited were represented by Lars Brusven.
Jurisdiction
- British Columbia
