The appellant, a homebuilder, appealed a summary judgment that granted the respondent relief from forfeiture of an $82,916.19 deposit for a home purchase.
The transaction did not close, and the appellant claimed the respondent breached the contract and forfeited the deposit.
The motion judge found it appropriate to relieve the respondent from forfeiture.
The appellant argued the motion judge applied the wrong legal test, asserting that relief from forfeiture is unavailable if the breach was entirely the party's fault.
The Court of Appeal dismissed the appeal, affirming that the correct test, as per Redstone Enterprises Ltd. v. Simple Technology Inc., focuses on whether the forfeiture is out of proportion to damages and if retention would be unconscionable, without making the applicant's fault a precondition.
The court upheld the motion judge's findings regarding the parties' sophistication, lack of loss to the vendor, and the appellant's misleading conduct.