Canada Case Law

Panacea World Health Corp. v. Alpha Equities Ltd.

Court

Supreme Court of British Columbia

The application for summary judgment was dismissed because the court could not, on the record before it, find the necessary facts without resolving a material head-on credibility dispute regarding alleged core pre-contractual representations about HVAC functionality; the size and complexity of the claim (circa $3M), and triable contractual interpretation issues about the landlord's HVAC obligations and the scope of the entire agreement clause made it unjust to decide the dispute summarily.

Source excerpt

• Commercial lease
• Summary trial suitability
• Entire agreement clause
• Fraudulent and negligent misrepresentation
• Contract interpretation
• Indemnity enforcement

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Red Carpet Tailoring and Alterations Inc. v. Appia Development (Rosser) Limited

Court

British Columbia Court of Appeal

Leave to appeal and a stay were dismissed from a security-for-costs order against a corporate plaintiff. The court found no reasonable prospect of success on appeal.

• Security for costs
• Impecuniosity
• Leave to appeal
• Vicarious liability
• Entire agreement clause
• Release / lease surrender

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Sewell v. Abadian

Court

British Columbia Court of Appeal

The Court of Appeal allowed Ms. Sewell’s appeal, finding the seller’s disclosure statement misrepresented knowledge of an unpermitted addition and requiring return of the $300,000 deposit.

• Property disclosure statements
• Misrepresentation (negligent and fraudulent)
• Reliance
• Deposit remedies
• Incorporation of disclosure into contract
• Property-disclosure-statements

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Lucia v. Armitage

Court

Nova Scotia Small Claims Court

Claim dismissed because the claimant failed to prove intentional or negligent misrepresentation or seller knowledge of the latent sewage defect; the defect was buried and latent, the PDS was found truthful and not materially misleading, and the buyer made an unconditional offer after inspection conditions lapsed.

Source excerpt

• Latent defect
• Property disclosure statement
• Seller disclosure
• Misrepresentation
• Caveat emptor
• Unconditional offer

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Metro-Can Construction (AT) Ltd. v. Alderbridge Way Limited Partnership

Court

Supreme Court of British Columbia

The court struck the plaintiff’s claims against directors, shareholders and investors, finding the pleadings deficient and the evidence insufficient to support misrepresentation, trust or unjust enrichment claims.

• Negligent misrepresentation
• Fraudulent misrepresentation
• Statutory trust (builders lien act)
• Constructive trust (remedial and substantive)
• Unjust enrichment
• Summary judgment

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The Owners, Strata EPS401 v. Findlay

Court

Supreme Court of British Columbia

A strata corporation succeeded in a REDMA misrepresentation claim over promised renovations and reserve funding, and the director was held personally liable.

• Misrepresentation in disclosure statement
• Standing and representative actions
• Director liability
• Damages assessment
• Limitation period
• Misrepresentation

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McHugh v. Cameron

Court

Supreme Court of British Columbia

After default judgment, the court summarily assessed damages for a failed tiny-home contract, awarding special, punitive, and aggravated damages plus interest and costs.

• Breach of contract
• Fraudulent misrepresentation
• Negligent misrepresentation
• Unjust enrichment
• Default judgment
• Summary assessment of damages

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0116064 B.C. Ltd. v. Alio Gold Inc.

Court

Supreme Court of British Columbia

The court dismissed Alio’s application to postpone mandatory mediation in a class proceeding, holding that pre-certification mediation was neither unfair nor impracticable.

• Postponement of mediation
• Mandatory mediation under regulation
• Certification of class action
• Common law misrepresentation
• Notice to mediate
• Mandatory-mediation

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Upm Raflatac, Inc. v. Okanagan Label & Print Ltd.

Court

Supreme Court of British Columbia

The court held UPM’s general sales conditions were part of the sales contracts and limited OKLP’s counterclaim to the invoiced value of the defective goods.

• Incorporation of terms
• Limitation of liability clauses
• Set-off
• Warranty
• Course of dealing
• Suitability for summary trial

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Karr v. Bowes

Court

Nova Scotia Small Claims Court

Seller knew or ought to have known of extensive latent rodent damage and negligently misrepresented the PDS by answering 'no'; caveat emptor did not bar the claim because damage was latent and had been covered over; buyer was contributorially negligent for proceeding despite inspector's note so liability apportioned 50/50; claimant awarded half of reasonable repair and reduced labour costs plus costs, totaling CAD 13,063.60.

Source excerpt

• Caveat emptor
• Latent defects
• Non-disclosure/misrepresentation in property sale
• Contributory negligence
• Remedies and damages

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