MISREPRESENTATION - What constitutes - Fraudulent misrepresentation

Law360 Canada ( February 21, 2025, 10:53 AM EST) -- Appeal by appellants from a court order finding them liable for breach of contract. The respondents purchased the Rock Pine Motel and Restaurant from the appellants, intending to continue its operation. They alleged that the appellants misrepresented the condition of the gas station's tank system, which was found to be non-compliant with regulatory standards after the sale. The respondents stated that the appellants took no steps to have work done on the tank system to comply with the order. They argued that Collins told them the tank system was in good condition and only required some testing in the spring, which Collins denied. The respondents initiated an action against the appellants for damages due to breach of contract and fraudulent and/or negligent misrepresentation. The trial judge ruled in favour of the respondents, determining that the appellants fraudulently misrepresented the condition of the tank system. The judge found that Collins knew about the non-compliance issues and misled the respondents. The appellants were also found liable for breach of contract for failing to provide a report confirming the tank system's compliance, as required by the Agreement of Purchase and Sale. The appellants appealed, challenging the findings on liability and damages....
LexisNexis® Research Solutions

Related Sections