A Certificate of Pending Litigation (CPL) is a court-authorized notice registered against land when a legal proceeding puts an interest in that land in question. Under section 103 of Ontario’s Courts of Justice Act, commencing the lawsuit alone does not give notice of the proceeding to non-parties. The CPL must first be issued by the court and then registered in the proper land registry office.
When can a CPL be sought?
A CPL is relevant where the claimant asserts an actual interest in specific real property rather than merely seeking payment of money.
Depending on the underlying claim, this can arise in disputes concerning ownership, agreements of purchase and sale, beneficial interests, trusts, fraud, or other litigation in which rights to the land itself are genuinely at issue.
Under Rule 42.01 of the Rules of Civil Procedure, a party seeking a CPL must claim that relief in the originating process or pleading commencing the proceeding and provide a description of the land sufficient for registration. A CPL may be issued by the registrar only under a court order.
For disputes involving title and property rights, see ME Law’s Real Estate Litigation practice.
Can a CPL be obtained without notice?
Yes. Rule 42.01(3) permits the initial motion for a CPL order to be brought without notice.
However, if the court grants the order, Rule 42.01 requires the party obtaining it to serve the order, together with the notice of motion and the affidavits and other materials used at the hearing, forthwith on the parties against whom an interest in land is claimed.
A CPL is therefore procedurally distinct from a without-notice injunction even though both remedies may sometimes be sought urgently.
See What other injunction-related remedies are available in Ontario? for the distinction between CPLs, Mareva injunctions, Anton Piller orders, and Norwich orders.
What effect does registering a CPL have?
Once issued and properly registered, the CPL gives notice of the pending litigation in relation to the land.
That can have significant practical consequences for a proposed sale, refinancing, or other transaction involving the property. But a CPL does not itself decide who owns the land or finally determine the underlying claim. The parties’ substantive rights remain to be resolved in the litigation.
Can a CPL be discharged?
Yes. Section 103 of the Courts of Justice Act gives the court authority to discharge a CPL in specified circumstances, including where the party who obtained it does not have a reasonable claim to the interest in land asserted.
This is one reason a CPL should not be used simply as leverage in a monetary dispute where no genuine interest in the property is claimed.
Can someone be liable for registering an improper CPL?
Yes.
Under section 103(4), a party that registers a CPL without a reasonable claim to an interest in the land is liable for damages sustained by any person as a result of the registration. Those damages may be determined in the underlying proceeding or in a separate proceeding.
How does ME Law assess whether a CPL is appropriate?
ME Law considers the precise interest claimed in the property, the underlying cause of action, the available evidence, the urgency of preserving the land-related claim, and the potential consequences of registration.
The analysis also considers whether another remedy is more appropriate and the exposure that may arise if a CPL is sought without a reasonable basis.
For ME Law’s approach to this remedy, see Certificate of Pending Litigation.
Contact ME Law if an Ontario real estate dispute may require a Certificate of Pending Litigation or other urgent protective relief.