Harrison v. Corbett

Harrison v. Corbett

Purchaser (Corbett) was not entitled to terminate because the actual reason he relied on (identity/behaviour of a neighbour) was not a contractual ground, he did not exercise contractual rights in good faith (e.g. lawyer approval, inspection, title objection) and the purported mutual release required vendor signature which was not obtained; agent Minasian breached duties by giving misleading assurances and failing to obtain legal advice, contributing to loss; Corbett is liable to vendor for damages and agents are liable to Corbett for most of that loss with Corbett allocated 25% responsibility.

Citation
2006 NSSM 15
Parties
Claimant (scch 263828): Diana Harrison; Defendant (scch 263828); Claimant (scch 265688): Justin Corbett; Defendant (scch 265688): Alan Minasian; Defendant (scch 265688): Royal LePage Atlantic Limited
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
14 August 2006
Procedural Posture
Small Claims Court Breach of Contract / Real Estate / Adjudicator Decision (final)
Outcome
Adjudicator finds Justin Corbett liable to Diana Harrison for breach of the agreement; finds Alan Minasian and Royal LePage Atlantic Limited liable to Justin Corbett for majority of loss due to negligent advice; apportions contributory responsibility 25% to Corbett and 75% to the agent/brokerage.
Legal Topics
Breach of Purchase and Sale Agreement, Termination of Contract, Right of Way / Easement, Real Estate Agent Duty of Care, Damages and Apportionment
Source Language
English
Contract Law Real Property Agency Law Professional Negligence Breach of Purchase and Sale Agreement Termination of Contract Right of Way / Easement Real Estate Agent Duty of Care +1 more

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Parties

Diana Harrison

Claimant (scch 263828)

Justin Corbett

Defendant (scch 263828); Claimant (scch 265688)

Alan Minasian

Defendant (scch 265688)

Royal LePage Atlantic Limited

Defendant (scch 265688)

Procedural Posture

Small Claims Court Breach of Contract / Real Estate / Adjudicator Decision (final)

Legal Issues

  1. 1 Was purchaser entitled to terminate the agreement?
  2. 2 Did the agent and brokerage breach duties to purchaser in advising/acting?
  3. 3 What damages are recoverable and how should liability be apportioned?

Ratio Decidendi

Purchaser (Corbett) was not entitled to terminate because the actual reason he relied on (identity/behaviour of a neighbour) was not a contractual ground, he did not exercise contractual rights in good faith (e.g. lawyer approval, inspection, title objection) and the purported mutual release required vendor signature which was not obtained; agent Minasian breached duties by giving misleading assurances and failing to obtain legal advice, contributing to loss; Corbett is liable to vendor for damages and agents are liable to Corbett for most of that loss with Corbett allocated 25% responsibility.

Court Disposition

Adjudicator finds Justin Corbett liable to Diana Harrison for breach of the agreement; finds Alan Minasian and Royal LePage Atlantic Limited liable to Justin Corbett for majority of loss due to negligent advice; apportions contributory responsibility 25% to Corbett and 75% to the agent/brokerage.

Orders

  • Judgment for Diana Harrison against Justin Corbett in the amount of $9,832.64 plus filing fee $160.00.
  • Judgment for Justin Corbett against Alan Minasian and Royal LePage Atlantic Limited in the amount of $7,374.48 plus filing fee $160.00.