The appellants appealed a summary judgment order requiring them to pay $285,000 in damages to the respondents for breach of contract and unjust enrichment arising from a failed real estate transaction.
The parties had entered into an agreement for the respondents to purchase a parcel of land, conditional on the appellants obtaining municipal approval for a condominium conversion within two years.
When approval was not obtained, the respondents sued.
The Court of Appeal allowed the appeal, finding the motion judge made palpable and overriding errors in concluding the appellants breached their duty of good faith.
The Court also held the motion judge erred in applying unjust enrichment where a contract governed the relationship, and failed to provide sufficient reasons for dismissing the appellants' counterclaim.
A new trial was ordered.
