Stephens v Sowiak
Colin Stephens
Law Firm / Organization
Forum Law
Lawyer(s)

George Samia

Orest Sowiak
Marilyn Sowiak
Travis McKay
Law Firm / Organization
Not Specified

Context: Colin Stephens sued the Sowiaks over a failed real estate transaction involving their home. The Defendants counterclaimed, seeking dismissal of the case.

Key Facts:

  • Offer and Counteroffer: Stephens offered $390,000 for the Sowiaks' home using the Alberta Real Estate Association (AREA) form. The Sowiaks countered with $410,000, which Stephens accepted via email.
  • Revocation: Before finalizing, the Sowiaks received another offer, withdrew their counteroffer, and sold the house to someone else.
  • Caveat: Stephens filed a caveat and demanded completion of the sale based on his acceptance of the counteroffer.

Legal Issues:

  1. Failure to Waive Conditions: The Defendants argued there was no binding contract since Stephens did not satisfy or waive conditions (financing, property, and sewer inspections).

  2. Prevention of Performance: Stephens invoked this doctrine, claiming the Sowiaks’ actions (selling to another party) made it impossible for him to fulfill the conditions.

Court's Findings:

  • Application of Doctrine: The court applied the doctrine of "prevention of performance," holding that by selling the property to another buyer, the Defendants made it impossible for Stephens to satisfy the conditions.
  • Outcome: The Defendants’ application for dismissal was denied. Stephens was excused from satisfying the conditions, and the case proceeded.

The court ruled in favor of Stephens, dismissing the Defendants' application. No monetary award was specified.

Court of King's Bench of Alberta
2303 20421
Real estate
Plaintiff