SALE OF LAND - Agreement of purchase and sale - Breach of - Damages

Law360 Canada (August 23, 2023, 6:18 AM EDT) -- Appeal by appellants from trial judgment for breach of contract on ground that trial judge erred in his calculation of damages. The appellants owned two adjacent properties that were used for commercial tenancies and a mini-storage business. The parties entered into a joint venture agreement to develop the properties. The joint venture never came to fruition. The respondent incurred development expenses. The parties entered into an agreement of purchase and sale (“2013 APS”). The respondent would pay rent to the appellants for a sales office. The appellants did not close the transaction, breaching the 2013 APS. The respondent incurred development expenses after the 2013 APS was signed and prior to the closing date. The parties entered into a further conditional agreement of purchase and sale (“2015 APS”). The 2015 APS lapsed. The respondent brought a claim against the appellants for losses it incurred from the appellants’ breach of the 2013 APS. The appellants brought a counterclaim regarding money the respondent owed for interest on a loan and for unpaid rental costs. The trial judge assessed damages for the increase in the value of the land between the date of 2013 APS and the date of the failed closing, and 90 per cent of all the respondent’s development expenses to the date of the respondent’s breach. The trial judge further ordered that the respondent owed the appellants damages under the counterclaim. The trial judge also ordered pre-judgment interest and costs to the respondent....
LexisNexis® Research Solutions

Related Sections