Owen v. Boudreau

Owen v. Boudreau

The seller is liable because her agent made misleading representations about the septic system which the buyers reasonably relied upon to their detriment; this satisfied the Cognos negligent misrepresentation test, and damages are awarded but reduced for betterment (one half of replacement cost) resulting in a compensatory award of $6,945.06.

Citation
2015 NSSM 45
Parties
Claimant: Nathan Owen; Claimant: Kimberly Kenny; Defendant: Kathleen Joyce Boudreau
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
29 October 2015
Procedural Posture
Small Claims Court / Adjudication / Final Decision
Outcome
Judgment for the Claimants (Owen and Kenny) against the Defendant (Boudreau)
Legal Topics
Septic System Misrepresentation, Property Disclosure Statement, Caveat Emptor, Agent Representations, Reliance and Damages, Betterment Deduction
Source Language
English
Real Property Contract Law Tort Negligent Misrepresentation Civil Procedure Septic System Misrepresentation Property Disclosure Statement Caveat Emptor Agent Representations +2 more

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Parties

Nathan Owen

Claimant

Kimberly Kenny

Claimant

Kathleen Joyce Boudreau

Defendant

Procedural Posture

Small Claims Court / Adjudication / Final Decision

Legal Issues

  1. 1 Whether seller or seller's agent made a misrepresentation that induced the buyers to purchase
  2. 2 Whether representations by seller's agent bind the seller
  3. 3 Whether buyers reasonably relied on the representations and waived inspection rights

Ratio Decidendi

The seller is liable because her agent made misleading representations about the septic system which the buyers reasonably relied upon to their detriment; this satisfied the Cognos negligent misrepresentation test, and damages are awarded but reduced for betterment (one half of replacement cost) resulting in a compensatory award of $6,945.06.

Court Disposition

Judgment for the Claimants (Owen and Kenny) against the Defendant (Boudreau)

Orders

  • Defendant shall pay the Claimants $6,945.06 inclusive of half the cost of the septic system replacement and one half of the filing fee
  • Claim dismissed in all other respects