The defendants, a builder (Park Avenue) and a developer (739), moved for summary judgment to dismiss the plaintiffs' action for declarations, specific performance, and damages related to the termination of pre-construction home agreements.
The plaintiffs, five buyers, alleged breach of good faith, honest performance, and negligence.
The court found that Park Avenue made reasonable efforts and acted in good faith to satisfy an early termination condition (obtaining a Cost Sharing Agreement, CSA) despite delays caused by a third-party developer.
The court also determined that 739, the developer, did not owe a duty of care to the purchasers due to a lack of proximity.
Even if a breach of contract by Park Avenue had occurred, the court concluded that the agreements would have been lawfully terminated anyway, resulting in no damages.
Summary judgment was granted in favour of the defendants, dismissing the plaintiffs' action.
