• CASES

    Search by

Mark T Johnson Professional Corporation v Vanshaw Enterprises Ltd

·  Issue:

  • The plaintiff, Mark T. Johnson, sought summary judgment for $300,000 in legal fees owed by the defendants under a share purchase agreement.

·  Background:

  • Kevin Van Der Kooy sold his casino shares to the defendants, with an obligation to pay the plaintiff, who had served as legal counsel for Van Der Kooy. The defendants failed to pay the $300,000 legal fee, prompting the plaintiff to sue.
  • The defendants argued that Johnson, not being a party to the agreement, could not enforce it.

·  Key Legal Points:

  • Privity of Contract: Typically, a third party cannot enforce a contract unless they are a party to it.
  • Third-Party Beneficiary Exception (Jus Quaesitum Tertio): The court found the agreement clearly intended to benefit the plaintiff (Johnson), enabling him to sue.

·  Decision:

  • The court awarded $300,000 plus interest to the plaintiff. The Fraser River exception to the privity of contract applied, allowing Johnson to claim the legal fees under the agreement.
Mark T. Johnson Professional Corporation
Law Firm / Organization
Hart & Company
Lawyer(s)

Patrick Hart

Vanshaw Enterprises Ltd
Albert Stark
Cameron Christianson
Court of King's Bench of Alberta
1803 11801
Corporate & commercial law
$ 300,000
Plaintiff