Kernahan and Graves Real Estate Co. v. National Trust Co., (1983) 1 O.A.C. 144 (CA)

• Judge: Howland, C.J.O., Dubin and Blair, JJ.A.
• Court: Court of Appeal (Ontario)
• Case Date: November 29, 1983
• Jurisdiction: Ontario
• Citations: (1983), 1 O.A.C. 144 (CA)

Kernahan v. Nat. Trust (1983), 1 O.A.C. 144 (CA)

MLB headnote and full text

Kernahan and Graves Real Estate Co. Limited v. National Trust Company Limited

Indexed As: Kernahan and Graves Real Estate Co. v. National Trust Co.

Ontario Court of Appeal

Howland, C.J.O., Dubin and Blair, JJ.A.

November 29, 1983.

Summary:

The plaintiff real estate broker sued the defendant vendor for a commission under a real estate listing agreement or, alternatively, damages for breach of the agreement. The trial judge dismissed the broker's action. The broker appealed.

The Ontario Court of Appeal allowed the appeal.

Brokers - Topic 4038

Compensation - Right to compensation - Default by broker's principal - Effect of - A condition of a real estate listing agreement was that the vendor would refer all offers received during the term of the agreement to the broker - The vendor failed to disclose the offer received from the successful purchaser - The Ontario Court of Appeal held that the vendor was liable to the broker for damages for breach of the agreement equal to the amount of the commission which would have been otherwise earned - See paragraph 11.

Evidence - Topic 6204

Parol evidence rule - Evidence offered to contradict or explain written agreement - After a real estate listing agreement expired, the vendor wrote to advise the broker to "continue to act on our behalf as marketing agents for the above noted property" - The Ontario Court of Appeal admitted extrinsic evidence to explain the letter's meaning, because it was ambiguous - See paragraphs 8 to 9.

Cases Noticed:

Transcanada Pipelines Ltd. v. Northern and Central Gas Corp. Ltd. (1983), 41 O.R.(2d) 447, appld. [para. 9].

Leitch Gold Mines Ltd. et al. v. Texas Gulf Sulphur Co. (Inc.) et al., [1969] 1 O.R. 469; 3 D.L.R.(3d) 161, appld. [para. 9].

Counsel:

Richard Barch, Q.C., for the appellant;

Ian M. Thompson, for the respondent.

This appeal was heard before Howland, C.J.O., Dubin and Blair, JJ.A., of the Ontario Court of Appeal. The decision of the Court of Appeal was delivered orally by Blair, J.A., and released on November 29, 1983.