Pacific Destinations Properties Inc. v. Granville West Capital Corporation

Pacific Destinations Properties Inc. v. Granville West Capital Corporation

The Court dismissed Granville West's appeal on prime consultant fees, holding the termination clause entitled the plaintiff to payment for prime consultant services performed to lawful termination (and the quantum meruit award equated to that entitlement); the Court allowed the plaintiff's cross-appeal in part,...

Source-derived case information.

Citation
1999 BCCA 115
Parties
Plaintiff (respondent) (appellant by Cross Appeal): Pacific Destination Properties Inc.; Plaintiff (respondent) (appellant by Cross Appeal): Robert Boyle Associates Ltd.; Defendant (appellant) (respondent by Cross Appeal): Granville West Capital Corporation
Court
British Columbia Court of Appeal
Jurisdiction
Canada
Judgment Date
24 February 1999
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From Trial Judgment
Outcome
Appeal dismissed; cross-appeal allowed in part
Legal Topics
Termination Clause, Condition Precedent, Repudiation, Implied Term, Loss of Opportunity, Assessment of Contingencies
Source Language
english
Contract Law Restitution/quantum Meruit Damages Construction and Development Law Termination Clause Condition Precedent Repudiation Implied Term +2 more

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Summary, issues, holding and outcome

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Parties

Pacific Destination Properties Inc.

Plaintiff (respondent) (appellant by Cross Appeal)

Robert Boyle Associates Ltd.

Plaintiff (respondent) (appellant by Cross Appeal)

Granville West Capital Corporation

Defendant (appellant) (respondent by Cross Appeal)

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From Trial Judgment

Legal Issues

  1. 1 Whether plaintiff entitled to prime consultant fees for hotel work after lawful termination of prime consultant agreement
  2. 2 Proper interpretation of payment/approval condition in the agreements (whether approval required a building permit or rezoning/development permit)
  3. 3 Whether quantum meruit or contractual termination clause governs recovery for work done prior to termination

Ratio Decidendi

The Court dismissed Granville West's appeal on prime consultant fees, holding the termination clause entitled the plaintiff to payment for prime consultant services performed to lawful termination (and the quantum meruit award equated to that entitlement); the Court allowed the plaintiff's cross-appeal in part, finding Granville West had fundamentally breached the development management agreement and awarding damages for loss of opportunity to earn management fees for the hotel, subject to a one-third contingency discount, fixed at $167,494, and awarded costs to the plaintiff. The Court held a repudiator cannot rely on its own breach to defeat a damages claim and construed approval for...

Court Disposition

Appeal dismissed; cross-appeal allowed in part

Orders

  • Appeal by Granville West dismissed
  • Cross-appeal allowed in part: plaintiff awarded damages for loss of opportunity in the sum of 167494 CAD (in lieu of the prior quantum meruit award)