In Zhang v. Primont Homes (Caledon) Inc., 2024 ONCA 622, the Ontario Court of Appeal upheld a decision finding a real estate agent and brokerage liable for negligent misrepresentation.

Case Summary:

• Facts: The defendants/appellants misrepresented the location of a property, claiming it was near a desirable intersection in Brampton when it was actually located three kilometers away in Caledon. Relying on this information, the plaintiffs/respondents signed an Agreement of Purchase and Sale (APS) and paid a $120,000 deposit.
• Trial Outcome: The trial judge found the defendants/appellants negligent and awarded the plaintiffs/respondents damages equal to the deposit plus interest. The plaintiffs/respondents had forfeited this deposit in a settlement with the developer, Primont Homes, after discovering the true location.
• Appeal Arguments:
  1. The defendants/appellants argued there was no negligent misrepresentation.
  2. They contended that negligence couldn't be established without expert testimony on the standard of care for realtors.
  3. They claimed the plaintiffs/respondents caused their own losses by repudiating the APS.
• Court of Appeal Decision: The appeal was dismissed. The court affirmed that the misrepresentation was a straightforward issue not requiring expert evidence. It rejected the argument that the plaintiffs/respondents’ failure to complete the purchase precluded them from recovering damages. The defendants/appellants’ failure to prove that the property’s appreciation was foreseeable also negated their mitigation defense.

Conclusion:

The court upheld the $120,000 damages award and dismissed the appeal, with no costs awarded due to the plaintiffs/respondents’ self-representation?.