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Six years later, the municipality stopped maintaining and repairing the drainage system.
The court stated it this way: “…the broad and unqualified language of the enurement clause constitutes an express stipulation by the contracting parties that they intended the benefit of the Agreement to be shared by future owners of Mr.
Sills’s lands, as his successors or assigns or by way of inheritance.
Is the electrical subcontractor the “successor” of the contractor? If the contractor assigned the electrical part of the main contract to the electrical subcontractor (if it were permitted to do so), then the enurement clause would likely apply because that clause would likely be expressed to include assignees.
If the clause includes both successors and assigns, then the word “successors” must be given a wider meaning than “assisgns”, but who does it include?
The Court of Appeal held that, in light of more recent decisions of the Supreme Court, the Greenwood case had been largely over-ruled.
In any event, having regard to the enurement clause, the prohibition against third party enforcement of the agreement had little or no application.
What about the owner of other interests in the land such as owners of easements or mortgagees?
The issue becomes even more complicated when one considers building contracts.
The trial judge and the Court of Appeal rejected that position. Belleville also said that the Browns had no standing to sue because they were third parties to the 1953 agreement, and that contract law does not entitle third parties to enforce agreements.
Belleville also said that the Browns were not “successors” of the original farmer who entered into the agreement.