Findlay v. The Owners, Strata EPS401
Bruce Findlay
Law Firm / Organization
Gehlen Dabbs Cash LLP
The Owners, Strata EPS401
Law Firm / Organization
Johns Southward LLP

Background: Bruce Findlay was a director of GPI Developments Inc., which converted a residential property in Ladysmith, BC, into a strata development named Seaview. GPI provided prospective purchasers with a disclosure statement that included promises about renovations and financial contributions. GPI later dissolved without fulfilling these commitments.

Legal Issues: The key issue was whether The Owners, Strata EPS401 (the strata corporation) had the standing under the Strata Property Act (SPA) to bring a claim on behalf of individual unit owners under section 22(3) of the Real Estate Development Marketing Act (REDMA) for misrepresentations in the disclosure statement.

Court's Decision: The British Columbia Court of Appeal, led by Justice Abrioux, held that the strata corporation did not have the standing to bring a REDMA claim. The court concluded that REDMA claims were personal to the initial purchasers and could not be pursued by the strata corporation under the SPA. The trial court had erred in awarding damages to the strata corporation.

Award and Costs: The trial court had awarded $170,960 in damages to the strata corporation, but this decision was overturned on appeal. The appeal was allowed, and the action was dismissed, with the award in favor of Bruce Findlay, who was not liable for the damages initially awarded by the trial court.

Court of Appeals for British Columbia
CA48990
Real estate
Appellant