1000425140 Ontario Inc. v. 1000176653 Ontario Inc.
1000176653 Ontario Inc.
1223408 Ontario Limited
Ray Gupta
Sandeep Gupta
Sunray Group of Hotels Inc.
1000425140 Ontario Inc.
Law Firm / Organization
Adair Goldblatt Bieber LLP

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:
    1. Reversing the burden of proof.
    2. Finding fraudulent misrepresentation and failure to disclose a latent defect.
    3. 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.

 

Court of Appeal for Ontario
COA-23-CV-1364
Real estate
$ 25,000
Respondent