Court File and Parties

COURT FILE NO.: 19-617195

DATE: 20191118

SUPERIOR COURT OF JUSTICE - ONTARIO

RE: PARADISE HOMES NORTH WEST INC., Plaintiff/Defendant by Counterclaim

AND:

PREMANANTH SIVAGNANAM, Defendant/Plaintiff by Counterclaim

BEFORE: Mr. Justice M. D. Faieta

COUNSEL: Samantha M. Green, for the Plaintiff/Defendant by Coutnerclaim

Premananth Sivagnanam, on his own behalf

HEARD: November 18, 2019

ENDORSEMENT

[1] The defendant agreed to purchase a house from the plaintiff during the height of the local real estate boom in April, 2017 for about $1.4 million. With upgrades the total purchase price was $1,406,507.96. The defendant paid deposits that totaled $150,758.98. The closing date on March 13, 2019. In the intervening two year period the government’s rules related to mortgage approvals became more stringent. The defendant was unable to close the purchase on March 13, 2019. The plaintiff terminated the agreement on March 15, 2019. The plaintiff obtained an appraisal which indicated that the fair market value of the property was $1,045,000.00 as at March 27, 2019. The plaintiff listed the property for $1,149,900.00. There were 21 showings of the property. It sold for that price on April 12, 2019. The sale closed on April 30, 2019.

[2] The defendant counterclaims for unspecified damages. He can no longer afford a lawyer and is self-represented. The defendant alleges that the plaintiff misrepresented the value of the property. He alleges that the plaintiff should have abated the purchase price to the appraised value.

[3] There is no basis for either allegation. The parties, through their counsel, appeared at CPC court in July, 2019. At that time a timetable for the exchange of evidence was established. The defendant is no longer represented by counsel and has not filed any evidence.

[4] This is an appropriate case for summary judgment given the plaintiff’s uncontradicted evidence.

[5] Further, unless the contract so specifies, there is no obligation on a builder to reduce the agreed purchase price when its market value has drop in the interim period prior to closing.

[6] I find that the defendant breached its contract with the plaintiff by failing to close the purchase on the closing date. I adopt the views expressed by Justice Morgan in Forest Hill Homes v. Ou, 2019 ONSC 4332, para. 15ff., regarding the assessment of damages for breach of contract.

[7] I accept the plaintiff’s position that the sum of $135,870.59 would place the plaintiff in the position it would have been in had the defendant not breached the agreement. In this regard, I accept the calculations and expenses outlined at paragraph 23 of Mr. Iamonaco’s affidavit. Judgement is granted to the plaintiff in the amount of $135,870.59.

[8] This transaction and proceeding have had significant consequences for the defendant and his marriage. Costs are in the discretion of the court. In the circumstances, I find that an award of costs is not appropriate.

Faieta J.

Date: November 18, 2019