Legal Blog

Exclusion or Exculpatory Clause

Ritchie v. Castlepoint Greybrook Sterling Inc. 2020 Ont SCJ

Disappointed purchasers were suing the developer for terminating their agreements and cancelling a condominium project. The developer had determined that costs increased significantly so that it was not worthwhile to continue with the development. It did not attempt to complete the process necessary to meet conditions and obtain financing necessary to continue with the project. For purposes of the summary judgment motion, the developer agreed that it had not terminated in accordance with the agreement. However, it relied on a section of the agreement that disallowed the purchasers’ right to damages regardless whether the agreements had been properly terminated or not. The judge agreed with the developer and dismissed the actions. He held that, as a matter of contract interpretation, the exculpatory clause excluded the claimed damages, was not unconscionable, and was not subject to an overriding public policy.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.