TERMS - Express terms - Exclusion clauses

Law360 Canada ( April 30, 2020, 9:29 AM EDT) -- Appeal by the plaintiffs from a summary trial decision upholding a contractual limitation of liability clause in favour of the defendants. The plaintiffs entered a contract to purchase a residential property. The purchase was subject to a home inspection report. The plaintiffs engaged the defendants to conduct the inspection for a fee of $525. The inspection contract included a limitation clause that restricted the defendants’ liability to the inspection fee. The clause was expressly brought to the plaintiffs’ attention at the time of signing. The plaintiffs accepted the defendants’ report and proceeded with the purchase. Approximately two months later, the plaintiffs discovered water leaking into the home from a sundeck. They alleged that deficiencies in the home caused damages exceeding $350,000. The plaintiffs sued the inspectors, among others, alleging negligence and negligent misrepresentation for the failure to detect and report the deficiencies. The defendants pleaded the provisions of the contract, including the limitation clause. A summary trial judge held that the plaintiffs’ claim was squarely within the limitation clause, and thus their maximum recovery against the defendants was contractually limited to the inspection fee. The plaintiffs appealed....
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