Jeff Galway

The appellant vendor breached agreements of purchase and sale for two development properties.

The trial judge awarded the respondent purchaser $15.5 million in damages based on lost development profits, rejecting the appellant's argument that damages should be limited to the difference between the contract price and the resale price to a third party.

The trial judge also found the respondent did not fail to mitigate its damages when its affiliates purchased other properties.

The Court of Appeal dismissed the appeal, holding that the trial judge did not err in accepting the lost development profits approach endorsed by both parties' experts, as it appropriately measured the specific economic opportunity lost.

The Court also upheld the finding that the affiliates' purchases were independent transactions that did not mitigate the loss.