Background:
Mun Reddy purchased a 2013 BMW M5 from Vancouver Motorsports Ltd. (VMS) for $54,198.50, with additional customizations costing $10,808. After finalizing the purchase, including transferring ownership and obtaining insurance, the vehicle was sent for detailing at Newton Auto Detailing Ltd. While there, a fire broke out in the engine compartment. Reddy never received the vehicle and filed a claim with the Insurance Corporation of British Columbia (ICBC), which was later put on hold pending an investigation. He then sued VMS, ICBC, Newton Auto Detailing Ltd., and Nomad Auto Sales Ltd.

Legal Issues and Arguments:

• Breach of Contract: Reddy argued that VMS fundamentally breached the contract by failing to deliver the vehicle. He claimed the vehicle was not in a “deliverable state” as required by the Sale of Goods Act (SGA), R.S.B.C. 1996, c. 410.

• Implied Conditions of Fitness and Merchantability: He alleged the vehicle contained a defect that caused the fire, violating SGA-implied conditions.

• Defense by VMS: VMS contended that ownership had transferred to Reddy before the fire, and there was no evidence of a pre-existing defect.

Decision and Costs:
The court ruled in favor of VMS, dismissing Reddy’s claim. It found that ownership had transferred before the fire and that there was no proven defect. VMS was awarded costs.