Mortgage and line of credit interest were not compensable

Parties entered into agreement of purchase and sale, but purchaser refused to close after learning property was previously used as marijuana growth facility. Vendors relisted property that day for same price, but it sold for $86,100 less than price purchaser agreed to pay. Vendors brought application against purchasers for relief in respect of agreement of purchase and sale. Judgment was made but set aside by Court of Appeal, which found purchaser breached agreement by failing to close and vendors were entitled to keep $30,000 deposit. This was endorsement on damages payable by purchaser to vendors. Purchaser was to pay vendor $61,429 damages. There was no evidence on what costs to remediate property would have been or what effect this would have had on price, and it would have been risky to delay re-listing property, so there was no failure to mitigate. Mortgage and line of credit interest were not compensable and this would be double counting, given bridge financing in place. Vendor was entitled to $86,100 difference in purchase price plus $5,329 carrying costs, less $30,000 deposit retained.

Beatty v. Wei (2018), 2018 CarswellOnt 17946, 2018 ONSC 6221, Cavanagh J. (Ont. S.C.J.).