B.C. developer ordered to pay pre-sale condo buyers $13M for breach of contract
The development company behind a B.C. condo project has been ordered to pay more than $13 million in damages to dozens of people who made pre-sale purchases that never came to fruition.
More than 30 people who made deposits on condos at what was then called the ALFA development in 2015 and 2016 sued Anderson Square Holdings Ltd., and its two directors Sunny Ho and Jeremy Liang, alleging breach of contract.
The pre-sale purchasers had their contracts terminated by the developer in July of 2019, the decision handed down Friday says. But units would ultimately be sold – at higher prices – roughly two years later, albeit under the name "PRIMA."
An expert report that the judge accepted noted that the units had increased in value by $9.91 million by the time the company terminated the contracts.
The $13,093,900 in damages awarded represented the difference between what the pre-sale buyers paid for their units and what the condos were valued at when the buyers "repudiated" their contracts by accepting returns of their deposits in August of 2021.
The judge's ruling came after a trial last year. By the time it began in November, the judge noted, an occupancy permit had been issued and roughly half of the units in the development had been sold.
The buyers' claim was, essentially, that the developer had no right to terminate the contract when it did. The developer and its directors argued the opposite.
Justice Kevin Loo's decision quotes from the termination notice sent to buyers, which said that circumstances beyond its control – including a legal dispute with contractors and an inability to secure financing – meant that it was unable to "perform its obligations under the agreement."
The pre-sale contracts did include two clauses that allowed for the agreement to be terminated before the completion date of Sept. 30, 2019, but the judge found neither of them applied in the circumstances.
"Anderson Square was not contractually entitled to terminate the contracts under either (clause) in July 2019. Further, I find that the personal defendants knew that the reasons they gave in the termination notices in support of their reliance on (one of the clauses) were false or misleading, or that they were reckless as to whether this was so," Loo wrote.
However, Loo also found that the two directors could not be held personally liable because their conduct did not meet the legal threshold for "dishonest performance" and even if it had, there was no evidence of damage. The judge also dismissed the plaintiff's claim against the directors for "unjust enrichment" finding that they had not introduced evidence proving that claim.
Loo also ordered the developer to pay the buyers' legal costs – with the exception of one plaintiff who sent his son to "impersonate" him during pre-trial proceedings.
CTVNews.ca Top Stories
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
Stormy Daniels took the witness stand Tuesday at Donald Trump's hush money trial, describing for jurors a sexual encounter the porn actor says she had with him in 2006 that resulted in her being paid off to keep silent during the presidential race 10 years later.
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Jeremy Skibicki has 'uphill battle' to prove he's not criminally responsible in Winnipeg killings: legal analysts
Accused killer Jeremy Skibicki could have a challenging time convincing a judge that he is not criminally responsible for the deaths of four Indigenous women, a legal analyst says.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
Air France flight from Paris to Seattle lands in Iqaluit after heat smell in cabin
A plane travelling from Paris to Seattle was forced to make an emergency landing in Iqaluit after there was a heat smell in the cabin during the flight.
CFL suspends Argos QB Chad Kelly at least nine games following investigation
The CFL suspended Toronto Argonauts quarterback Chad Kelly for at least nine regular-season games Tuesday following its investigation into a lawsuit filed by a former strength-and-conditioning coach against both the player and club.
Boy Scouts of America changing name for first time in 114 years, aiming for inclusivity
The Boy Scouts of America is changing its name for the first time in its 114-year history and will become Scouting America. It's a significant shift as the organization emerges from bankruptcy following a flood of sexual abuse claims and seeks to focus on inclusion.
RCMP not investigating possible foreign interference cases related to Chiu, Dong: Duheme
Canada's federal police force is not investigating any possible instances of foreign interference in the cases of former Conservative MP Kenny Chiu and Liberal-turned-Independent MP Han Dong, RCMP Commissioner Mike Duheme says.
Federal government grants B.C.'s request to recriminalize hard drugs in public spaces
The federal government is granting British Columbia's request to recriminalize hard drugs in public spaces, nearly two weeks after the province asked to end its pilot project early over concerns of public drug use.