The plaintiffs (purchasers) and defendants (vendors) entered into an Agreement of Purchase and Sale for a condominium.
Prior to closing, the vendor's agent caused extensive water damage to the property while replacing plumbing.
The purchasers refused to close without a substantial holdback to assess and repair the unknown extent of the damage, which the vendor rejected.
Both parties brought motions for summary judgment.
The court found that the water damage was substantial, the purchasers acted reasonably and in good faith, and the vendor failed to act in good faith by initially refusing an independent inspection.
The purchasers' cross-motion for summary judgment was granted, the agreement was validly terminated, the deposit was ordered returned, and damages for additional living expenses were awarded.