Heather Catania

The plaintiff, Sepanta Corp., sought default judgment against the defendant for breach of an Agreement of Purchase and Sale (APS) for a commercial condominium and a subsequent settlement agreement.

The defendant failed to close on both occasions.

The plaintiff sought damages for the difference in sale price, carrying costs, and legal fees, and an order to release a $20,000 deposit held in trust.

The court found the defendant in breach, awarded damages for the loss on resale and most incurred expenses, but disallowed municipal tax penalties due to insufficient causation evidence.

The court also ordered the release of the deposit to the plaintiff and awarded partial indemnity costs.

The appellant appealed a decision by the motion judge upholding a default payment of $60,000 in a settlement agreement, arguing it was unconscionable.

The Court of Appeal found no error in the motion judge's thorough analysis and conclusion that the default payment was reasonable in the circumstances.

The appeal was dismissed with costs awarded to the respondent.