Facts
- The plaintiffs purchased units in a property called "The Merchant’s House," which was marketed as residential condominiums.
- Defendants claimed the property was suitable for use as stand-alone, fully equipped condominiums.
- However, municipal zoning only allowed the property to be used as a lodging house or a bed and breakfast (B&B).
- Plaintiffs alleged they suffered losses due to their reliance on the defendants' misrepresentations.
Legal Issues
- Negligent Misrepresentation: Did the defendants misrepresent the character of the property to the plaintiffs, and did the plaintiffs suffer damages as a result?
- Wrongful Termination of Leaseback Arrangement: Did the plaintiffs unlawfully terminate a leaseback agreement with the defendants, causing the defendants to suffer losses?
- Slander of Title: Did the plaintiffs slander the defendants' title by filing a lis pendens against the Ryan Mansion property?
- Adverse Inferences: Could the court draw adverse inferences against the defendants for not testifying?
Decision
- The court found the defendants liable for negligent misrepresentation, as the property could not be used as represented.
- The plaintiffs were awarded damages of $1,847,381, reduced by the amount recovered in a prior settlement with Denis Barry.
- The defendants' counterclaims for wrongful termination of the leaseback arrangement and slander of title were dismissed due to lack of evidence.
- Nolan Hall Real Estate Services Limited was not held liable by default of appearance at trial.
Conclusion
The defendants were held jointly and severally liable for damages due to negligent misrepresentation. The court also awarded costs to the plaintiffs for both the claim and the counterclaim.
