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Supreme Court of Canada· 2011landmark

Kerr v Baranow

[2011] 1 SCR 269· 2011 SCC 10
PropertyJDPropertyFamilyNCA
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Joint family venture: a new analytical lens for unjust-enrichment claims by unmarried cohabitants.

At a glance

Kerr restated the law of unjust enrichment in cohabitation cases. Where the parties have engaged in a joint family venture and the wealth accumulation is linked to that venture, the appropriate remedy is a monetary award proportionate to the contributions, not a constructive trust over a specific asset.

Material facts

Kerr and Baranow cohabited for over 25 years in BC. On separation, Kerr sought a share of Baranow's wealth; he counterclaimed for the value of his caregiving after her stroke.

Issues

How are unjust-enrichment claims analysed in cohabitation cases?

Held

Joint family venture framework adopted; remand for reassessment.

Ratio decidendi

Where the unjust-enrichment elements are met and there has been a joint family venture, the appropriate remedy is a monetary award proportionate to the claimant's contributions to the accumulation of wealth, calculated on a value-survived (not quantum-meruit) basis. A constructive trust is reserved for cases where a monetary remedy is inadequate and the contribution is linked to specific property.

Reasoning

Cromwell J identified four indicia of a joint family venture: mutual effort, economic integration, actual intent, and priority of the family. Where these are present, the contributions are best valued by reference to the wealth accumulated during the relationship, not by hourly accounting.

Significance

Modern Canadian framework for cohabitee property claims. Largely supersedes the unfocused "value-received" analysis. Used in concert with Pettkus on the foundational unjust-enrichment elements.

How to cite (McGill 9e)

Kerr v Baranow, 2011 SCC 10, [2011] 1 SCR 269.

Bench

McLachlin CJ, Binnie J, LeBel J, Deschamps J, Fish J, Abella J, Charron J, Rothstein J, Cromwell J

Source: scc-csc.lexum.com

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