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:
- Unconscionability: Groleau should not keep the deposit as she suffered no loss.
- Capacity: Mouralian lacked capacity to enter the agreement due to mental health issues and recent bereavement.
- Fresh Evidence: Mouralian sought to introduce new medical evidence to support her lack of capacity claim.
Court of Appeal's Analysis:
- Fresh Evidence: Rejected as it was improperly submitted and did not conclusively show lack of capacity.
- Motion Judge's Decision: Affirmed, as no reversible error was found.
- 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.