Beaverbrook v. Beaverbrook: When is a Loan a Gift?
A legal dispute in New Brunswick has been gaining attention in the national media. At stake is the ownership of artwork having a value of over $100 million.
On one side is the Beaverbrook Art Gallery in Fredericton, New Brunswick; on the other is the Beaverbrook U.K. Foundation. Both the Gallery and the Foundation were established by the late Lord Beaverbrook (who was raised in New Brunswick and went on to become a prominent figure in British business and a confidante of Winston Churchill).
The issue appears to be simple: were paintings and sculptures once owned by the late Lord Beaverbrook gifted or merely loaned to the gallery? Apparently (and remarkably) the arrangement was not papered in any clear way. The matter is being arbitrated by former Supreme Court of Canada Justice Peter Cory and a decision is apparently expected in March.
A similar issue was considered by one of my partners, Justin de Vries, in his blog posting on September 27, 2006, in which the law relating to the making of gifts was considered in some detail. Simply put, to be valid a gift must be characterized by: (i) donative intent, (ii) acceptance by the recipient, and (iii) proof of delivery. It will be interesting to see the outcome.
Until tomorrow,
David
