The defendants moved for summary judgment dismissing a solicitor’s negligence claim arising from a commercial real estate transaction involving a building encroaching on a municipal laneway.
The plaintiffs alleged their lawyers failed to warn that the municipality might require payment to convey the laneway and that the title insurance obtained did not cover such a cost.
The court rejected arguments that the claim was statute‑barred and held that expert evidence was unnecessary because the failure to warn of a significant legal risk was apparent on the record.
Applying the “but for” causation test, the court found that had proper advice been given the plaintiffs likely would have sought protection such as a holdback or price abatement.
The motion for summary judgment was dismissed and partial summary judgment was granted to the plaintiffs, leaving only the assessment of damages and the claim against the title insurer for trial.