Background:
Culos Development (1996) Inc. entered into an Option to Purchase (OTP) agreement with Gregory Steven Baytalan for a property in Kelowna, BC. Culos planned to develop a multi-unit residential complex and successfully rezoned the land during the 18-month option period. When Culos attempted to exercise the OTP and pay the deposit, Baytalan refused, claiming Culos had failed to comply with the OTP's terms.

Legal Arguments/Issues:
Culos sued for specific performance, which would compel Baytalan to complete the sale. Baytalan argued the OTP was void and cited Culos' alleged failures to meet its terms. Culos failed to prove its entitlement to specific performance but was awarded damages instead. The central issue was whether Baytalan breached the OTP, and if Culos was entitled to specific performance or damages.

Baytalan sought to avoid paying Culos' legal costs, claiming divided success because specific performance was not awarded. He also referenced a formal settlement offer of $165,115.69, which Culos rejected.

Decision and Award:
The court ruled in favor of Culos, awarding $181,710.69 in damages. Culos was found to have substantially succeeded, despite not obtaining specific performance. Baytalan's application to have each party bear their own costs was dismissed. The court awarded Culos Development its Scale B costs throughout the proceedings, including costs of the application for costs.