Cattell v Lazar
Bradley Cattell
Law Firm / Organization
Cuelenaere LLP
Kelly Cattell
Law Firm / Organization
Cuelenaere LLP
Jacqueline Lazar
Law Firm / Organization
McKercher LLP

Facts:
Colin Bradley Cattell and Kelly Cattell sued Jacqueline Lazar regarding the aborted sale of their property. Ms. Lazar alleged water damage on the closing day and sought to rescind the contract, claiming fraudulent misrepresentation and substantial damage. She counterclaimed for the return of $179,259.68 already paid. The Cattells maintained the damage was minor and denied any misrepresentation.

Legal Issues:

  1. Whether the property suffered "substantial damage" under clause 5.3 of the sale contract, allowing termination of the agreement.
  2. Whether the Cattells fraudulently misrepresented the property's condition, entitling Ms. Lazar to rescind the contract.
  3. Appropriate remedies and damages.

Court's Findings:

  • The water intrusion constituted substantial damage under clause 5.3, making the contract void.
  • Fraudulent misrepresentation occurred when the Cattells denied prior water intrusion during a walkthrough and failed to disclose June 2014 water issues, despite knowing Ms. Lazar's concerns.
  • The misrepresentations materially influenced Ms. Lazar’s decision to proceed with the purchase.

Award and Costs:
The court ordered the return of $179,259.68 to Ms. Lazar, plus pre-judgment interest from June 25, 2014. Costs were awarded under column 2 of the Tariff of Costs, reflecting moderate case complexity.

Conclusion
Ms. Lazar successfully rescinded the contract and received damages for her reliance on the misrepresentation. The decision emphasized the seller's duty to disclose material property issues.

Court of King's Bench for Saskatchewan
QBG-SA-01002-2015
Real estate
$ 179,260
Defendant