Groupe Sutton Actuel inc. v. Ferme Dominique inc.
SUTTON CURRENT GROUP INC.
Law Firm / Organization
Independent
Lawyer(s)

Jocelyn Bélisle

DOMINIQUE FARM INC.
Law Firm / Organization
Spiegel Sohmer Inc.

Key Points:

  • Issue: The main dispute centered on whether an "irrevocability clause" in a real estate brokerage contract waived the client's right to unilateral termination under Article 2125 of the Civil Code of Quebec (C.c.Q.).

  • Parties:
    • Plaintiff: Groupe Sutton Actuel Inc. (real estate brokerage firm).
    • Defendant: Ferme Dominique Inc. (property owner).

Facts:

  • The contract used was the OACIQ "Exclusive Brokerage Contract - Sale of Real Estate," including a clause stipulating that the contract was "irrevocable."
  • The defendant challenged this clause, citing precedents (e.g., Gestion David Couture inc. v. Sucrerie la Coulée d’or inc.) to argue that such a clause could not override their termination rights under Article 2125 C.c.Q.

Court’s Analysis:

  1. Irrevocability Clause:

    • The clause was clear and unambiguous.
    • Unlike prior cases, the client (Robert Swain, representing Ferme Dominique) was a sophisticated businessperson who had the contract terms read and explained to him.
    • The contract included specific terms negotiated and added by Swain, reflecting informed consent.
  2. Key Legal Precedents:

    • The court distinguished this case from Steve Brown Machineries Solutions (SBMS) Inc. and Sucrerie la Coulée d’or due to the specific circumstances and the sophistication of the defendant.
    • The court referenced Bernard v. Re/Max 1er Choix, which upheld a similar clause under comparable circumstances.
  3. Defendant’s Counterclaim:

    • The defendant's claim of $25,000 for procedural abuse was rejected as unsubstantiated.

Judgment:

  • The court partially upheld the plaintiff’s claim, awarding $55,119.02 with interest and costs to Groupe Sutton Actuel Inc.
  • The defendant's counterclaim was dismissed.
Court of Quebec
460-22-007124-233
Real estate
$ 55,119
Plaintiff