Braid v. Destiny Homes Inc.

Braid v. Destiny Homes Inc.

The defendants waived the April 30 essential removal date by conduct and failed to give reasonable notice to make time once more of the essence; their unilateral termination on June 4 was invalid, the contract was rescinded by the defendants' conduct and thus the claimants are entitled to return of the $6,000; defendants cannot set off purported damages against the purchase moneys; claimants never had title to the structure while attached to land.

Citation
2012 NSSM 62
Parties
Claimant: Leanna Norma Braid; Claimant: Adam Kiril McCannel; Defendant: Destiny Homes Incorporated; Defendant: Destiny Development Inc.
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
30 November 2012
Procedural Posture
Small Claims Court / Hearing and Decision (adjudication)
Outcome
Claim allowed in part: claimants awarded return of purchase money and costs; other consequential losses denied.
Legal Topics
Time of the Essence, Waiver of Time, Termination and Rescission, Set Off, Ownership of Fixtures, Contractual Damages, Costs
Source Language
English
Contract Law Property Law Restitution/unjust Enrichment Time of the Essence Waiver of Time Termination and Rescission Set Off Ownership of Fixtures +2 more

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Parties

Leanna Norma Braid

Claimant

Adam Kiril McCannel

Claimant

Destiny Homes Incorporated

Defendant

Destiny Development Inc.

Defendant

Procedural Posture

Small Claims Court / Hearing and Decision (adjudication)

Legal Issues

  1. 1 Whether the claimants had acquired ownership of the house while it remained attached
  2. 2 Whether time was of the essence and whether that requirement was waived
  3. 3 Whether the defendants validly terminated the contract and could retain the $6,000 as forfeiture or set off damages

Ratio Decidendi

The defendants waived the April 30 essential removal date by conduct and failed to give reasonable notice to make time once more of the essence; their unilateral termination on June 4 was invalid, the contract was rescinded by the defendants' conduct and thus the claimants are entitled to return of the $6,000; defendants cannot set off purported damages against the purchase moneys; claimants never had title to the structure while attached to land.

Court Disposition

Claim allowed in part: claimants awarded return of purchase money and costs; other consequential losses denied.

Orders

  • Defendants Destiny Homes Incorporated and Destiny Development Inc. to return $6,000 to Leanna Norma Braid and Adam Kiril McCannel jointly
  • Defendants jointly liable for court filing costs of $182.94 and service costs of $149.50