Canada Case Law

Stubbs. v. White

Court

Nova Scotia Small Claims Court

The claim is dismissed because the PDS and SFHQ reflected the sellers' knowledge and were not warranties, reliance on the outdated SFHQ/PDS was unreasonable, there is insufficient evidence of a causal link between any nondisclosure and the claimed repair costs, and the alleged defects were discoverable on inspection, so no negligent misrepresentation or liability is established.

Source excerpt

• Negligent misrepresentation
• Caveat emptor
• Property disclosure statement
• Latent vs patent defects
• Causation
• Measure of damages

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Baglole v. MacEachern

Court

Nova Scotia Small Claims Court

The claim is dismissed because the evidence shows the water trough and repeated sump activity were patent and/or known or observable prior to closing, there was no proof of a knowing, reckless or fraudulent misrepresentation or active concealment of a dangerous latent defect by the sellers, the claimant waived conditions after inspection, and post-closing events (including sump re‑routing and power outages) materially contributed to the flooding; the counterclaim is dismissed for lack of evidentiary support and jurisdictional relevance.

Source excerpt

• Property disclosure statement
• Misrepresentation
• Latent vs patent defects
• Caveat emptor
• Damages - betterment
• Counterclaim dismissal

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Leppert v. Gillis

Court

Nova Scotia Small Claims Court

Claim dismissed: on balance of probabilities the defendants did not fraudulently or recklessly misrepresent, did not actively conceal a dangerous latent defect, and purchasers waived conditions after receiving an inspection that flagged issues; therefore caveat emptor applies and no actionable PDS misrepresentation or contractual breach was proven.

Source excerpt

• Property disclosure statement
• Latent vs patent defects
• Misrepresentation
• Caveat emptor
• Inspection reliance
• Betterment in damages

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Day v. Young

Court

Nova Scotia Small Claims Court

Defendant misrepresented the condition of the house in the PDS; Claimant relied on the PDS and sustained loss from recurring basement flooding. Damages are awarded to restore the Claimant to the position but-for the misrepresentation, with a 50% betterment deduction applied to sewer replacement and proportional deductions where replacement enhanced the property; insufficient evidence to award all claimed basement repair estimates.

Source excerpt

• Property disclosure statement
• Misrepresentation
• Damages
• Betterment
• Caveat emptor

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Sewell v. Abadian

Court

Supreme Court of British Columbia

Summary trial real estate dispute over a $300,000 deposit and unpaid second deposit. The court dismissed the buyer’s claim and allowed the seller’s counterclaim.

• Repudiation
• Latent defect
• Property disclosure statement
• Deposit in trust
• Summary trial
• Pre-judgement interest and costs

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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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Lowe v. Widly

Court

Nova Scotia Small Claims Court

The adjudicator found negligent misrepresentation in respect of the septic warranty disclosure and the garage condition as omitted or inaccurately described in the PDS; the plaintiff reasonably relied on the PDS and suffered loss. Other claims were dismissed because defects were patent, remediated, unsupported by evidence, or speculative. Damages awarded reflected repair costs adjusted for betterment and evidentiary shortcomings, resulting in awards for septic fees and garage repairs plus interest.

Source excerpt

• Property disclosure statement
• Latent vs patent defects
• Negligent misrepresentation
• Fraudulent misrepresentation
• Caveat emptor
• Damages

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Flood v. Pateman

Court

Supreme Court of British Columbia

The Supreme Court of British Columbia dismissed a purchaser’s claim that sellers failed to disclose a silverfish infestation in a condominium PDS.

• Property disclosure statement
• Caveat emptor
• Negligent misrepresentation
• Latent defect
• Infestation (pests)
• Property-disclosure-statement

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Rodrigue v. Snarby

Court

Nova Scotia Small Claims Court

Claim dismissed because claimant failed to prove actionable misrepresentation or negligence by any Defendant: the sellers disclosed what they knew in the PDS, the inspector's verbal report and limitation agreement precluded liability and did not negligently omit critical matters, the agent's statements were largely puffery or based on sellers' representations and not reasonably relied upon to the claimant's detriment, and the claim against counsel would in any event be time‑barred or unsupported by clear instructions to terminate the transaction; consequential and repair cost claims were exce…

Source excerpt

• Property disclosure statement
• Home inspection
• Real estate agency duties
• Dual agency
• Limitation clauses in contracts
• Discoverability of causes of action

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Cooper v. MacLellan

Court

Nova Scotia Small Claims Court

The Defendant, despite evidence he knew of historic stormwater intrusion and repeatedly contacted Halifax Water, answered PDS questions in the negative; that omission amounted to negligent or intentional misrepresentation. Damages are assessed in tort as the likely overpayment reflective of the property's true value absent the misrepresentation; the court awards a speculative reduction of purchase price by 5% ($15,000) plus modest costs, denying large expert fee recovery because it was primarily commissioned for remediation advice and was disproportionate to its evidentiary value.

Source excerpt

• Property disclosure statement
• Misrepresentation
• Negligent misrepresentation
• Damages
• Costs
• Caveat emptor

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