Background

• Agreement and Breach: In 2016, Shireen Naeem agreed to purchase a home from Bowmanville Lakebreeze for $629,900. The closing date was postponed multiple times and finally set for April 23, 2019. When the transaction did not close, the appellant claimed Naeem breached the contract, terminated the agreement, and forfeited her $82,916.19 deposit.
• Legal Action: Naeem sued for the return of her deposit with interest. The motion judge ruled in her favor, relieving her from the forfeiture. The appellant appealed.

Court’s Decision

• Appeal Dismissed: The appeal was dismissed.

Key Points of the Decision

• Relief from Forfeiture: The appellant argued that relief is not available if the breach was entirely the respondent's fault. The court referenced Redstone Enterprises Ltd. v. Simple Technology Inc., which does not make fault a precondition for relief from forfeiture. Factors include proportionality of the forfeited deposit to the damages suffered and whether retaining the deposit would be unconscionable.
• Factors Considered: The appellant is a sophisticated business, while the respondent is a widow who worked two jobs while undergoing cancer treatment. The appellant suffered no loss from the transaction not closing and misled the respondent regarding her rights.

Conclusion

• The motion judge found the appellant’s conduct unconscionable and granted relief from forfeiture. The appellate court upheld this decision, awarding costs of $12,500 to the respondent.