Our team acted for a real estate developer in the Gatineau region in connection with a dispute over the characterization of a sum of money paid as part of a major real estate transaction involving the purchase of several development properties.
The client, acting as buyer, had paid a large deposit, which the opposing party, acting as seller, refused to consider as a down payment that would reduce the sale price.
Since the deposit provided for in the contract documents was described as “non-refundable,” the seller considered it as liquidated damages to compensate for the delay in signing the deed of sale. However, the Court, after hearing only the legal arguments presented by both parties, and therefore based solely on the principles of contractual interpretation, found in favour of our client by finding that it was a deposit.
The strategic decision not to call any witnesses at trial and to rely strictly on the contracts signed between the parties proved to be a favourable decision for the client—not only did the client win its case but, by focusing on the crux of the matter, it had the benefit of the trial being shortened by several days.
A Fasken team composed of Marc James Tacheji, Vincent Belley and Sara Reid advised a real estate developer in connection with this litigation.
Jurisdiction
- Québec
