Tregobov v. Paradis et al., 2015 MBQB 136

• Judge: Schulman, J.
• Court: Court of Queen's Bench of Manitoba (Canada)
• Case Date: August 13, 2015
• Jurisdiction: Manitoba
• Citations: 2015 MBQB 136;(2015), 320 Man.R.(2d) 150 (QB)

Tregobov v. Paradis (2015), 320 Man.R.(2d) 150 (QB)

MLB headnote and full text

Temp. Cite: [2015] Man.R.(2d) TBEd. AU.011

Lianne Tregobov (plaintiff) v. Normand Paradis, Irene Paradis, Glen Williams, Saramax Investments Ltd., carrying on business as Century 21 Bachman and Associates, Mantin Consulting Inc., carrying on business as Century 21 Bachman and Associates and 5887381 Manitoba Ltd., carrying on business as Century 21 Bachman and Associates (defendants) (by original action)

Lianne Tregobov (plaintiff) v. Irene Paradis, as Executor of the Estate of Normand Paradis, Deceased, Irene Paradis, Glen Williams, Saramax Investments Ltd., carrying on business as Century 21 Bachman and Associates, Mantin Consulting Inc., carrying on business as Century 21 Bachman and Associates and 5887381 Manitoba Ltd., carrying on business as Century 21 Bachman and Associates (defendants)

(CI 12-01-77977; 2015 MBQB 136)

Indexed As: Tregobov v. Paradis et al.

Manitoba Court of Queen's Bench

Winnipeg Centre

Schulman, J.

August 13, 2015.

Summary:

The plaintiff purchased a home from the defendants. Five months after she took possession, the basement flooded. The plaintiff sued the defendants and their realtor, Williams, seeking damages for fraud related to an alleged cover up of damage to the home's foundation, failure to make full disclosure about problems with the foundation and failure to disclose the condition of part of the back yard.

The Manitoba Court of Queen's Bench dismissed the action.

Brokers - Topic 3568

Duties of broker to third parties - Real estate brokers - Deceit or misrepresentation - The plaintiff purchased a home from the defendants - Five months after she took possession, the basement flooded - The plaintiff sued the defendants and their realtor, Williams, seeking damages for fraud related to an alleged cover up of damage to the home's foundation, failure to make full disclosure about problems with the foundation and failure to disclose the condition of part of the back yard - The Manitoba Court of Queen's Bench dismissed the action on a basis of a lack of reliance by the plaintiff - Regarding the realtor's liability, the court stated, "While I have found that Mr. Williams' disclosure was less than adequate, I find that the inadequate disclosure caused no damage to the plaintiff." - See paragraph 30.

Fraud and Misrepresentation - Topic 2535

Misrepresentation - Elements - Reliance - The plaintiff purchased a home from the defendants - Five months after she took possession, the basement flooded - The plaintiff sued the defendants and their realtor, seeking damages for fraud related to, inter alia, an alleged cover up of damage to the home's foundation and failure to make full disclosure about problems with the foundation - The Manitoba Court of Queen's Bench dismissed the action - As the plaintiff had not sought a property disclosure statement, she had to prove a cause of action based in fraud - The defendants' statement in the listing information that "some foundation work may be required" was insufficient disclosure as the defendants knew that work was needed on the home's north wall - However, the plaintiff's action failed for lack of proof of reliance - Despite the deficiencies in disclosure, the plaintiff knew there was a structural defect in one wall and that there was a "guesstimate" to repair it for $7,000 - The plaintiff knowingly accepted the situation - As it turned out, three walls needed repair but the defendants were only aware of the need for repairs to one wall - There being no actionable fraud, the plaintiff could not recover damages due to the terms of her unconditional offer to purchase - See paragraphs 16 to 28.

Fraud and Misrepresentation - Topic 2566

Misrepresentation - Representations - Particular statements - Quality of land - [See Fraud and Misrepresentation - Topic 2535 ].

Fraud and Misrepresentation - Topic 2825

Misrepresentation - Defences - Lack of reliance - [See Fraud and Misrepresentation - Topic 2535 ].

Sale of Land - Topic 1904

The contract - Duties of seller - To disclose quality defects - [See Fraud and Misrepresentation - Topic 2535 ].

Sale of Land - Topic 8107

Defences of vendor - Caveat emptor - General - The plaintiff purchased a home from the defendants - Five months after she took possession, the basement flooded - The plaintiff sued the defendants, seeking damages for fraud related to, inter alia, failure to disclose the condition of part of the back yard - The Manitoba Court of Queen's Bench dismissed the action, stating, "Counsel for the plaintiff argued that the condition of the back yard, which develops [sic] some years, constitutes a latent defect that should have been disclosed. It is true that the transaction took place at a time of year when the water problem would not likely occur. I find that the issue, such as it was, is patent. It was up to the plaintiff to ask about it or seek its inclusion in a property condition statement. The location and grade of the back 75 feet of this lot in relation to the neighbours' lots was patent. The problem encountered was discoverable by the plaintiff by inspection and ordinary vigilance. Caveat emptor applies." - See paragraph 29.

Sale of Land - Topic 8504

Remedies of purchaser - Fraud - What constitutes fraud - [See Fraud and Misrepresentation - Topic 2535 ].

Sale of Land - Topic 8626

Remedies of purchaser - For quality defects - Patent defects - [See Sale of Land - Topic 8107 ].

Cases Noticed:

Alevizos et al. v. Nirula (2003), 180 Man.R.(2d) 186; 310 W.A.C. 186; 2003 MBCA 148, appld. [para. 16].

Derry v. Peek (1889), L.R. 14 App. Cas. 337 (H.L.), refd to. [para. 18].

Counsel:

Faron J. Trippier, Karen R. Wittman and Ambre K. Anjoubault, for the plaintiff;

Ralph D. Neuman and Samuel A. Gabor, for the defendants, I. Paradis, as Executor of the Estate of N. Paradis, Deceased and I. Paradis;

Gregory M. Fleetwood and Adele D. Domenco, for the defendants, G. Williams, Saramax Investments Ltd., carrying on business as Century 21 Bachman and Associates, Mantin Consulting Inc., carrying on business as Century 21 Bachman and Associates and 5887381 Manitoba Ltd., carrying on business as Century 21 Bachman and Associates.

This action was heard by Schulman, J., of the Manitoba Court of Queen's Bench, Winnipeg Centre, who delivered the following judgment on August 13, 2015.