The defendants moved for summary judgment to terminate a commercial property agreement due to the failure to obtain condominium conversion approval within two years, a condition precedent under the Planning Act.
The plaintiffs opposed, seeking specific performance or damages, arguing the property was unique and the defendants breached their good faith obligation to diligently pursue approval.
The court granted summary judgment, finding the condominium conversion commercially absurd and specific performance impossible without Planning Act compliance.
While denying specific performance, the court found the defendants breached their duty to notify the plaintiffs of the futility of the plan and awarded the plaintiffs $285,000 in damages for their investment and relocation costs, offset by accumulated rent held in court.