B.C. Court of Appeal Clarifies When a CPL May Be Filed Against a Spouse’s Parent’s Property

In Kapoor v. Puri, 2026 BCCA 313, the British Columbia Court of Appeal provided important guidance on when a certificate of pending litigation, commonly called a CPL, may be registered against property owned by a spouse’s parent or another third party during family litigation.

The case arose from a family property dispute in which the claimant registered CPLs against two properties held by her former spouse’s mother. The claimant alleged that her former spouse had a beneficial interest in the properties because he had contributed family income toward their down payment, acquisition, maintenance or preservation.

Bare allegations are not enough

The Court of Appeal concluded that these allegations were not sufficient. The pleadings did not explain the nature of the alleged contributions, which family income was used, how the contributions were made or when they occurred.

The Court held that there must be a meaningful connection, or “nexus,” between the material facts pleaded and the claimed interest in the property. Bare statements that a spouse contributed money to a property are not enough to support a CPL against property registered to a third party. The appeal was therefore allowed and the CPLs were cancelled.

Why this matters in family litigation

The decision is particularly significant in family cases involving property held by parents, relatives, corporations or family businesses. A CPL can seriously restrict an owner’s ability to sell, refinance or otherwise deal with real estate. Before using this powerful remedy, a claimant must carefully identify the legal basis for the alleged beneficial ownership and plead the essential facts supporting it.

Complex family property disputes require more than identifying assets and making general allegations. Henderson & Lee Law Corporation assists clients with family property claims, beneficial ownership disputes, trust claims, third-party property issues and applications to register or cancel CPLs. Early legal advice can help ensure that the pleadings, evidence and procedural strategy are properly aligned from the beginning.

Henderson & Lee Law Corporation was not counsel in Kapoor v. Puri. This article is provided for general information and does not constitute legal advice.