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
'I just can't believe that it took so long': Body found in wreckage 3 months after deadly fire
A man accused of arson in a January Old Strathcona apartment fire is expected to be charged with manslaughter after a body was discovered in the burned building late last month.
No proof man lied to brother about number of kittens born in litter, B.C. tribunal rules
A man was denied a $5,000 payout from his brother after a B.C. tribunal dismissed his claim disputing how many kittens were born in a litter.
Work stoppage possible as WestJet issues lockout notice to maintenance engineers' union
A lockout notice issued by WestJet to a union representing aircraft maintenance engineers could result in a work stoppage next week.
Quebec police hand out hundreds of tickets to Hells Angels and other bikers before 'first run' meeting
Quebec provincial police handed out hundreds of fines to Hells Angels members and other supporting motorcycle clubs who met for their 'first run' in a small town near Sherbrooke, Que.
Auston Matthews skates ahead of Game 7, status unclear with season on the line
Auston Matthews was back on the ice with his teammates Saturday.
Russia puts Ukrainian President Zelenskyy on its wanted list
Russia has put Ukrainian President Volodymyr Zelenskyy on its wanted list, Russian state media reported Saturday, citing the interior ministry’s database.
Snakes almost on a plane: U.S. TSA discovers a bag with small snakes in passenger's pants
According to an X post by the Transportation Security Administration, officers at the Miami International Airport found the small bag of snakes hidden in a passenger's trousers on April 26 at a checkpoint.
A Chinese driver is praised for helping reduce casualties in a highway collapse that killed 48
A Chinese truck driver was praised in local media Saturday for parking his vehicle across a highway and preventing more cars from tumbling down a slope after a section of the road in the country's mountainous south collapsed and killed at least 48 people.
Feds hope to table foreign interference legislation next week: LeBlanc
Democratic Institutions Minister Dominic LeBlanc says he plans to table legislation this week to help the federal government address foreign interference, but he wouldn't say whether the proposal will include a foreign agent registry.