Executive Summary: Key Legal and Evidentiary Issues

• Dispute arose from a failed real estate transaction involving non-delivery of keys on closing.

• Plaintiff claimed the seller breached the agreement, while the seller counterclaimed for damages or specific performance.

• Court held that although the plaintiff breached the agreement, the seller improperly withheld most of the plaintiff’s funds.

• Damages for the seller were offset by resale profits, resulting in only nominal recovery.

• Claim against the seller’s lawyer was dismissed as no duty of care was owed to the buyer.

• Plaintiff awarded partial indemnity costs, but reduced due to unreasonable conduct and delay.

Factual background and procedural history

In May 2019, Anthony Gyimah, operating as Entry Point Investment Group, agreed to purchase a property in Cochrane, Ontario, from the Roman Catholic Episcopal Corporation of the Diocese of Hearst for $65,000. He paid a $9,000 deposit and provided closing funds of $58,600.22 by June 28, 2019. Despite paying the full amount of $67,600.22, the deal did not close. The dispute centered on the seller’s failure to deliver the keys to the buyer’s Toronto lawyer, prompting the buyer’s counsel to refuse registration of the transfer.

Gyimah sued for rescission, the return of his funds, legal fees, and general damages. The Church counterclaimed for specific performance or damages, alleging the plaintiff’s refusal to close constituted a breach. The Church later sold the property in April 2020 for $80,000—$15,000 more than the agreed sale price with Gyimah—and sought damages of approximately $25,000.

Key legal issues and findings

The court found that although the plaintiff technically breached the agreement by refusing to complete the transfer, the Church was not entitled to retain the full amount of funds it received. The Church had no legitimate claim to $57,600.22 of the plaintiff’s money once the resale occurred, yet it held those funds in trust for years, using them as leverage during negotiations. This was deemed improper, although not amounting to bad faith.

Damages were calculated based on actual losses. Since the Church resold the property at a higher price, its potential loss was offset. The court awarded it only $219.61 in damages. Gyimah was awarded $70,142.23 but was denied full or substantial indemnity costs due to his own unreasonable conduct during litigation, including exaggerated settlement offers, unsupported interest claims, and inappropriate communication with opposing counsel.

The claim against the Church’s real estate lawyer, André Lehoux, was dismissed. The court reiterated the established principle that an opposing party’s lawyer owes no duty of care to the other side. Nonetheless, Lehoux was awarded only $20,000 in costs—significantly less than claimed—due to the simplicity of the issues and proportionality concerns.

Outcome

The plaintiff was awarded a monetary judgment reflecting return of funds minus minor damages, along with prejudgment interest and partial indemnity costs capped at $15,000. The Church’s counterclaim for specific performance failed. The Church recovered nominal damages of $219.61. Mr. Lehoux successfully defended the claim and was awarded substantial indemnity costs of $20,000. The case highlights the legal consequences of both parties’ procedural missteps and affirms that buyers are entitled to the return of funds when sellers lack a legal basis to retain them.