Anbros Financial Inc., a broker, sought summary judgment for an $88,000 brokerage fee from 2528367 Ontario Inc. and its guarantors.
Anbros procured a loan commitment from Firm Capital Corporation (FCC) for a construction project, but the defendants did not proceed.
The defendants argued the Letter of Intent (LOI) was not binding and that the procured commitment was not substantially in accordance with the LOI.
The court found the LOI to be a binding agreement and that the defendants, by signing a subsequent Letter of Interest with FCC, had accepted the modified terms, making the broker fee payable upon issuance of the commitment.
The court dismissed the defendants' arguments, finding their rejection disingenuous and a tactic to avoid payment.
Summary judgment was granted in favour of Anbros for $88,000.