The applicant, DHMK Properties Inc., sought summary judgment for damages following the respondents' (2296608 Ontario Inc. and Mund Real Estate Group Inc.) repudiation of a real estate purchase agreement.
The respondents had refused to close a $5.3 million transaction and subsequently sued for specific performance with an abatement, which was dismissed.
DHMK claimed $930,000 in damages, representing the difference between the contract price and the property's market value, less the forfeited deposit.
The respondents argued DHMK failed to mitigate by refusing a post-judgment offer to complete the original contract and that the damages calculation was flawed by ignoring a warranty regarding net operating income.
The court granted summary judgment to DHMK for $930,000, affirming the standard measure of damages for breach of a land sale contract and rejecting the respondents' mitigation and damages calculation arguments.
