David Morawetz

Following the successful application by the purchaser to rescind an agreement of purchase and sale due to the property's history as a marijuana grow-op, the purchaser sought costs of $30,000 on a partial indemnity scale.

The vendors argued no costs should be awarded due to unproven allegations of recklessness and procedural delays by the purchaser's counsel.

The court rejected the argument to deny costs entirely but reduced the quantum, finding some time spent by the purchaser's counsel was beyond the reasonable expectations of the unsuccessful parties.

Costs were fixed at $26,436.43.

The sellers of a residential property represented in the agreement of purchase and sale (APS) that, to the best of their knowledge, the property had never been used for the growth or manufacture of illegal substances.

Before closing, the purchaser discovered the property had previously housed a marijuana grow operation in 2004, a fact unknown to the sellers when the APS was made.

The purchaser refused to close and sought rescission and return of deposit, while the sellers sought declarations that the APS was binding and damages for breach.

The court found the "illegal substances clause" to be a material representation that induced the purchaser to enter the APS.

Upon learning the property's history, the sellers' representation became untrue, triggering a duty to disclose.

The court held that the purchaser was entitled to rescission, declaring the APS void ab initio, and ordered the return of the deposit.

The sellers' application was dismissed, and the purchaser's claim for damages was allowed to proceed as an action.

The appellants appealed a summary judgment declaring them in breach of the trust provisions of the Construction Lien Act and ordering them to pay $216,662.84 to Airex Inc. Ben Air System Inc. had entered into a subcontract with Omico Mechanical Ltd. to perform HVAC work on a TTC facility and ordered equipment from Airex.

The appellants argued that Ben Air had paid out more money on the project than it received, and therefore had not breached the trust provisions.

The Court of Appeal upheld the summary judgment, finding that the appellants failed to file evidence of sufficient weight to support their position.

The evidence was contradictory, lacked documentary support, and was delivered late.

The court found that once Airex established it was a subcontractor owed money and that Ben Air had received trust funds, it was Ben Air's burden to show the trust monies had been properly applied.

The plaintiff sought to enforce a Quebec default judgment against the personal defendant, Lorenzo Panarese, in Ontario.

Panarese challenged the Quebec court's jurisdiction and argued that the judgment should not be enforced due to breach of natural justice or fraud.

The court found that the Quebec court had a real and substantial connection to the dispute and that Panarese had attorned to its jurisdiction by participating in the Quebec proceedings without reserving on jurisdiction.

The court dismissed the defences of natural justice and fraud, concluding that the evidence did not support a finding of fraud and that issues of service and the right to be heard were already litigated and decided in Quebec.

The Ontario court granted recognition and enforcement of the Quebec judgment against Panarese.

The appellants appealed a summary judgment awarding damages for unpaid invoices and declaring a breach of trust under the Construction Lien Act.

The Divisional Court raised a jurisdictional issue, noting that the proceeding primarily involved non-statutory claims for goods sold and delivered, with the trust claim being ancillary.

The court held that section 71 of the Construction Lien Act did not confer jurisdiction over the entire proceeding, which was properly appealable to the Court of Appeal under section 6 of the Courts of Justice Act.

The court ordered the appeal transferred to the Court of Appeal.