John I.G. Melia

Following the release of the court's reasons for judgment, the appellant requested a reconsideration of part of the decision.

The Court of Appeal declined to change the reasons for judgment.

Costs were fixed in favour of the respondents in the amount of $17,808.35 plus GST.

The respondents purchased condominium units as tax-sheltered investments, with the purchase price allocated between land/construction and services.

When the vendor failed to deliver title, the respondents sought compensation from the Ontario New Home Warranty Program.

The Program argued the contract was severable and refused to compensate for the services portion.

The Court of Appeal held that the agreements constituted a single contract for the provision of a home at fair market value, entitling the respondents to compensation for the full purchase price.

The Court also clarified that prejudgment interest is payable out of the guarantee fund at the rate prescribed by the Condominium Act, not the Courts of Justice Act.

The appellant appealed the trial judge's dismissal of its motion to amend its damage claim and the award of only nominal damages for expenditures incurred prior to the respondent's breach of contract.

The respondent cross-appealed the finding that it breached the contract and the trial judge's costs order.

The Court of Appeal dismissed both the appeal and cross-appeal, finding that the trial judge correctly concluded the amendment would cause prejudice, that the appellant's expenses would have exceeded its benefits had the contract been performed, and that the respondent's reasons for terminating the contract were manufactured.