Key Facts:

• ATB Financial registered a first mortgage on a property.
• The property was subdivided, and ATB mistakenly discharged the mortgage on both lots.
• Later, a new mortgage (Piccolo Mortgage) was registered on one of the lots.
• The ATB mortgage was reinstated on that lot after the mistake was discovered.
• Both mortgages are now in foreclosure, and there are insufficient funds from the sale of the lot to pay both creditors.

Issue:
Does the corrected ATB mortgage regain priority over the later-registered Piccolo mortgage, or does the Piccolo mortgage retain priority?

Decision:
The court ruled in favor of the Piccolo mortgage, giving it priority. Although the Registrar corrected the mistaken discharge of the ATB mortgage, the Piccolo mortgage was properly registered in the interim. Under Alberta's Land Titles Act (LTA), corrections cannot prejudice the rights of third parties who registered interests for value during such mistakes.

No Monetary award was specified.

Legal Basis:

• The court relied on s. 187(4) of the LTA, which allows corrections only if they do not affect rights acquired in the interim.
• Precedent from Manor Investments v. Ross and other cases supported the principle that interim rights should be protected.

Conclusion:
The Piccolo mortgage has priority, as its registration occurred during the period when the ATB mortgage was mistakenly discharged.