Legal Blog

Condition Costs

Our newsletter of December 2007 discussed Champlain Thickson Inc. v. 365 Bay New Holdings Ltd. [2007] O.J. No. 3254 (S.C.J.). In that case, the judge held that a vendor did not meet conditions of the sale and therefore could not complain when the purchaser relied upon them and refused to close. Just before trial, the purchaser had offered to allow the vendor to keep $215,000 of the $400,000 deposit; the vendor had refused. The judge awarded the purchaser partial indemnity costs to the date of its offer to settle and substantial indemnity costs thereafter. He fixed the costs at $134,000.

In his original decision, the judge had omitted to assess the vendor’s damages. It was important he do so because the vendor was appealing the decision. Contrary to what we had speculated, the vendor did re-sell the property relatively quickly, but for less than the purchaser was to have paid. The judge assessed the vendor’s damages at $1,806,718.