The plaintiff sold a gasoline station to the defendants and took back a VTB mortgage and a promissory note.
The defendants stopped making payments, alleging the plaintiff misrepresented the station's financial performance and failed to complete a drive-through as undertaken.
The court found no misrepresentation, as the financial information provided was not materially inaccurate and the defendants waived their due diligence conditions.
However, the court found the plaintiff breached its undertaking to complete the drive-through and awarded the defendants an $80,000 offset against the amounts owing under the VTB mortgage.
The plaintiff was granted judgment for the balance owing and possession of the property.
