26 Feb 2025
Heritage Property Corporation v Triovest Inc
Background
- The appellants, Heritage Property Corporation, Seventh Avenue Property Corporation, Stuart Block Inc., sought to develop land in Calgary, requiring rezoning and a development permit.
- They agreed to sell Lot 13 to the respondents, Triovest Inc., Triovest Properties Inc., 1704873 Alberta Inc., 1908762 Alberta Ltd., who signed a non-opposition letter for rezoning; the agreement was silent on the development permit.
- Rezoning was approved, and the appellants obtained a development permit, but neighboring landowners opposed it before the Subdivision and Development Appeal Board (SDAB).
- The respondents joined the opposition after an unsuccessful attempt to purchase the entire parcel from the appellants.
- The SDAB revoked the permit, creditors lost confidence, and the land was sold via judicial sale—which the respondents later purchased at a reduced price.
Key Legal Issues & Court Findings
- Breach of Contract & Good Faith
- The appellants alleged respondents violated the Lot 13 agreement’s intent and acted in bad faith.
- The Court ruled the agreement only required non-opposition to rezoning, not the development permit.
- Summary Dismissal
- The chambers judge upheld dismissal, finding no genuine issue for trial.
- Good Faith & Contractual Honesty
- The duty of honest performance cannot create new obligations beyond the contract.
Appeal Outcome
- Appeal dismissed; no dishonesty found.
- Reminder issued on compliance with court filing rules.
- No monetary award specified.