By Kirsty Strong

The recent Ontario Court of Appeal (“Court”) decision in Third Eye Capital Corporation v. Dianor Resources Inc. is important for several reasons. It provides confirmation to gross overriding royalty (“GOR”) holders that a GOR constitutes an interest in land and it also clarifies the test to apply when determining whether a GOR constitutes an interest in land.

That being said, as part of a second phase of the appeal the Court has invited further submissions in order to determine whether a court has the authority to vest out certain interests in land when granting a vesting order meaning the relief currently felt by GOR holders could be temporary.