Legal Fixtures and Your Home Purchase

 

Navigating the legal maze of property transactions and civil judgments requires understanding nuances that aren’t always obvious. Michael Mulligan, barrister and solicitor with Mulligan Defence Lawyers, unpacks two fascinating cases that illuminate these complexities.

First, Mulligan explores a cautionary tale about what constitutes a “fixture” in home purchases. When buyers discovered a beloved dresser missing after taking possession—revealing holes in the wall behind it—they sued for $7,430 in damages. The case hinged on whether the dresser qualified as a fixture that should remain with the property. The legal test? If an item is attached to the property in a way that removal would cause damage, it’s likely a fixture. Those IKEA bookshelves you’ve secured to walls? They might legally transfer with your home unless specifically excluded in the sale contract.

The same dispute involved “conversation sets” on patios—a vague term that led to confusion when the sellers removed chairs and a large wicker sectional. Despite going to court, the buyers received just $100 for their trouble, demonstrating how ambiguous contract language and litigation costs can result in pyrrhic victories. Mulligan’s advice is crystal clear: be specific in contracts about what stays and what goes when selling or buying property.

The conversation shifts to a disturbing case involving a disbarred lawyer convicted of sexually assaulting a potential client in his office. When sued civilly, he claimed any judgment would be pointless as he’d simply declare bankruptcy again. This reveals a common misconception about bankruptcy protection. While bankruptcy can discharge many debts, Section 178 of the Bankruptcy and Insolvency Act specifically excludes sexual assault damages, intentional torts, fraud, and court fines from discharge. The $270,000 judgment against him would survive bankruptcy—though collecting from someone without assets remains challenging regardless.

These cases illustrate critical principles: precise language prevents expensive disputes, bankruptcy won’t erase obligations from intentional wrongdoing, and winning a judgment doesn’t guarantee collection. Whether you’re buying a home or seeking justice through civil courts, understanding these legal realities can save you significant time, money, and heartache.

 

Legally Speaking with Michael Mulligan is live on CFAX 1070 every Thursday at 12:30 p.m. It’s also available on Apple Podcasts or wherever you get your podcasts.