12 Aug 2024
1000425140 Ontario Inc. v. 1000176653 Ontario Inc.
Case Background:
- Issue: The Purchaser sought rescission of the Agreement of Purchase and Sale (APS) of a luxury home, alleging fraudulent misrepresentation by the Seller.
- Claims: The Purchaser also claimed conspiracy against other defendants for concealing threats to the property and transferring proceeds improperly.
Lower Court Decision:
- Summary Judgment: Granted in favor of the Purchaser for rescission of the APS due to fraudulent misrepresentation and latent defect, with equitable damages awarded.
Appeal Arguments:
- The appellants contended the motion judge erred by:
- Reversing the burden of proof.
- Finding fraudulent misrepresentation and failure to disclose a latent defect.
- Granting partial summary judgment.
Court of Appeal Findings:
- Marketing Misrepresentation: The property was marketed as "private and secure," despite known safety risks.
- Post-Sale Issues: The Purchaser discovered threats related to the previous occupant, Aiden Pleterski, causing security concerns.
- Summary Judgment Justified: The Seller's fraudulent misrepresentations warranted rescission and damages.
- Bifurcation Appropriate: The conspiracy claim could proceed separately, with no risk of inconsistent findings.
Conclusion:
- Appeal Dismissed: The motion judge's decision was upheld.
- Costs: Appellants to pay $25,000 to the respondent.