Mouralian v. Groleau
Natalie Mouralian
Law Firm / Organization
Coombs Law
Lawyer(s)

Kenyah Coombs

Isabelle Groleau
Law Firm / Organization
Laishley Reed LLP
Lawyer(s)

Matthew Morden

Background:

  • Issue: Appeal from the Superior Court of Justice's dismissal of Mouralian's action for the return of her $70,000 deposit after a failed real estate transaction.
  • Context: Mouralian could not obtain financing to purchase Groleau's property priced at $1,499,000. Groleau subsequently sold the property at a profit.

Lower Court Decision:

  • Motion Judge: Justice Jasmine T. Akbarali
  • Outcome: Summary judgment in favor of Groleau, dismissing Mouralian's action and awarding Groleau $12,000 in costs.

Appellant's Arguments:

  1. Unconscionability: Groleau should not keep the deposit as she suffered no loss.
  2. Capacity: Mouralian lacked capacity to enter the agreement due to mental health issues and recent bereavement.
  3. Fresh Evidence: Mouralian sought to introduce new medical evidence to support her lack of capacity claim.

Court of Appeal's Analysis:

  1. Fresh Evidence: Rejected as it was improperly submitted and did not conclusively show lack of capacity.
  2. Motion Judge's Decision: Affirmed, as no reversible error was found.
  3. Two-part Forfeiture Test (Stockloser v. Johnson):
    • Proportion of Damages: Assumed in favor of Mouralian as Groleau did not suffer a loss.
    • Unconscionability: Not established. Factors considered:
      • No inequality of bargaining power.
      • Arms-length negotiation with agents.
      • Appellant's intent to complete the transaction until financing fell through.
      • Past real estate experience of the appellant.

Conclusion:

  • Appeal Dismissed: No basis for intervention.
  • Costs: Respondent entitled to partial indemnity costs, to be agreed upon or submitted in brief written form within 7 days. No amount specified.

 

Court of Appeal for Ontario
C70741
Real estate
Respondent