The appellant law firm acted for the purchaser in a commercial real estate transaction.
After closing, the purchaser discovered a 0.3 metre reserve on the property that required a significant cost recovery payment to the municipality for road access.
The purchaser successfully sued the law firm for negligence.
On appeal, the law firm challenged the negligence finding and the dismissal of its cross-claim against the vendor for contribution and indemnity.
The Court of Appeal dismissed the appeal, finding that the law firm failed to properly investigate the access issues raised by the reserve, and that the vendor had no legal or equitable obligation to disclose the unregistered cost recovery agreement.
