The applicant, Prosperity Homes Limited (the "Builder"), brought an Application seeking a declaration and an order compelling the respondent, 756949 Ontario Inc. (the "Developer"), to provide a written letter of approval for construction plans.
The Builder argued entitlement based on a prior agreement and the Developer's implied duty of good faith, while the Developer asserted discretionary authority.
The court expressed concerns about the appropriateness of proceeding by application due to factual disputes and the nature of the specific performance remedy sought.
The parties subsequently reached a resolution where the Developer agreed to provide the approval letters, and both parties reserved their rights to claim damages and costs in future proceedings.
The Application was adjourned sine die.
