In a dispute arising from the sale of development land subject to a 27-lot draft plan of subdivision, the vendor alleged breach of fiduciary duty and contract after its dual real estate agent became an undisclosed shareholder of the purchaser before closing.
The court found the agent and brokerage owed fiduciary duties, failed to provide the written disclosure required by the Real Estate and Business Brokers Act, and were required to disgorge the commissions paid on closing.
The court also awarded the vendor the disputed $100,000 vendor take-back mortgage credit paid into court, with 7% simple interest, but refused claims to subsequent commissions and punitive damages.
On the counterclaim, the purchaser recovered mortgage refinancing and related legal costs caused by the vendor's lack of cooperation, but failed on broader claims for development and road costs; punitive damages of $10,000 were awarded against the vendor and its principal for misconduct surrounding an ex parte certificate of pending litigation.
