Background:
Michael Holmes and Joseph Bichel represented a class of purchasers who contracted with Jastek Master Builder 2004 Inc. for condominium units in Saskatoon. Jastek canceled the agreements, citing inability to secure a building permit and rising costs. The purchasers sued for breach of contract and damages.
Legal Issues:
- Breach of Contract: Whether Jastek breached agreements by failing to use best efforts to secure a building permit and deliver units.
- Fiduciary Duty: Whether Jastek owed a fiduciary obligation to purchasers.
- Punitive Damages: Whether Jastek’s conduct warranted punitive damages for dishonesty and alleged exploitation.
Court Findings:
- Jastek breached contracts by failing to deliver units as agreed and misleading purchasers about the building permit.
- Jastek owed fiduciary duties to purchasers due to their equitable interests in the project but did not act maliciously to warrant punitive damages.
Damages and Awards:
- The court awarded $3,264,000 in compensatory damages, representing the difference between contractual purchase prices and market value at breach dates.
- Pre-judgment interest was awarded under The Pre-Judgment Interest Act, but punitive damages were denied.
