McDermott v. Allen

McDermott v. Allen

The sellers breached express contractual warranties and the disclosure obligations by providing an out‑of‑date disclosure statement and failing to disclose a latent hazardous well and an unregistered possessory easement; the buyer reasonably relied on those representations and incurred foreseeable remedial costs, entitling her to recover the hydro‑fracturing cost, the cost to secure the second well, nominal general damages and claim costs totalling $4,495.52.

Citation
2010 NSSM 65
Parties
Claimant: M. Shelley McDermott; Defendant: Earl Allen; Defendant: Lorraine Allen
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
8 June 2010
Procedural Posture
Small Claims Court / Judgment/decision
Outcome
Claim allowed in part; judgment for the claimant against the defendants
Legal Topics
Property Condition Disclosure Statement, Breach of Warranty, Latent Defect, Possessory Unregistered Easement, Disclosure Obligations, Remedies Damages
Source Language
English

Case Brief

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Parties

M. Shelley McDermott

Claimant

Earl Allen

Defendant

Lorraine Allen

Defendant

Procedural Posture

Small Claims Court / Judgment/decision

  1. 1 Whether the sellers breached the warranty regarding adequate water supply
  2. 2 Whether the sellers failed to disclose the existence and location of a second well (latent defect)
  3. 3 Whether the undisclosed well constituted an unregistered possessory easement binding the purchaser

Ratio Decidendi

The sellers breached express contractual warranties and the disclosure obligations by providing an out‑of‑date disclosure statement and failing to disclose a latent hazardous well and an unregistered possessory easement; the buyer reasonably relied on those representations and incurred foreseeable remedial costs, entitling her to recover the hydro‑fracturing cost, the cost to secure the second well, nominal general damages and claim costs totalling $4,495.52.

Court Disposition

Claim allowed in part; judgment for the claimant against the defendants

Orders

  • Earl Allen and Lorraine Allen to pay M. Shelley McDermott the sum of $4,495.52