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The Court of Appeal upheld liability against a realtor for nondisclosure of an ALR boundary review, but reduced lost profits from $675,277 to $219,084.
Where a landlord breaches a promise to repair, tenants are entitled to a rent abatement proportionate to their loss; the temporary $100/month concession did not automatically become permanent but the court may assess and award an appropriate abatement—in this case a $500 abatement reducing the tenants' liability to $405.60.
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The Court held that disability payments need not be deducted because the evidence indicated the policy was privately obtained and paid for by the respondent; gross sales could not be deducted because there was no evidential foundation challenging the business expenses or net income figures, but the admitted aggregate net income of $7,439 earned during the two years must be deducted from the $98,928 general damages award, resulting in a partial allowance of the appeal.
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The Court allowed the appeal, holding the trial judge erred by limiting damages to a 12‑month period, by improperly applying the appellant's past profit margin and by imposing a 25% contingency reduction; the proper compensation is the appellant's loss from misappropriation of the four contracts (recoverable net profit from those contracts with only direct job costs and commissions deducted), and the damages award was varied to $260,000.00.
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