• Case Overview: This case involved Sherene St. Cyr and her company, 1440208 Alberta Ltd. ("208"), suing Atlin Hospitality Ltd. (AHL) and its representative, Robert Reed. St. Cyr alleged breach of contract and negligent misrepresentation, claiming that undisclosed defects in a property purchased from AHL rendered it uninhabitable due to mold contamination. AHL counterclaimed, citing unpaid mortgage payments.

• Key Issues:

  1. Entire Agreement Clause: The court found that the contract's entire agreement clause barred claims of negligent misrepresentation, asserting that no representations beyond those written in the contract could be relied upon.
  2. Caveat Emptor (Buyer Beware): The doctrine of caveat emptor applied to most defects, as they were either visible or discoverable through reasonable inspection. Exceptions, such as latent defects making a property unfit for habitation, did not apply here, as there was no proof AHL knew of any undisclosed latent defect.
  3. Breach of Contract: The court concluded that St. Cyr could not demonstrate AHL had breached contract terms related to the property’s condition, as the defects were apparent and St. Cyr had failed to inquire further or perform a thorough inspection.

• Outcome: The plaintiffs’ claims were dismissed. The court found a mortgage default but did not determine the exact amount owed, leaving this for future proceedings.

This decision reinforces buyer responsibilities under caveat emptor and restricts tort claims when entire agreement clauses are present.