137574 Canada Ltée (Canada) was in the business of selling land in St-Georges and had sold 63 out of 65 lots.

It accused the City of misleading potential buyers by falsely stating that the remaining two lots were non-buildable due to a watercourse.

It claimed $55,529.16 in lost profits and various expenses.

Arguments of the Parties

Canada:

• The City was at fault for failing to mention that exceptions allowed construction despite the riparian buffer zone.
• It only learned this in July 2019 upon selling the lots and filed its claim in January 2020, within the six-month limitation period.

City of St-Georges:

• Denied any wrongdoing, stating its employees acted in accordance with regulations.
• Canada never applied for a building permit, unlike Steve Bolduc, who successfully obtained one.
• The claim was time-barred, as Canada had been aware of the situation since 2007.

Court’s Analysis

• No proven fault: No buyers testified that they were discouraged. Canada misinterpreted municipal regulations and took no official steps.
• Prescription (limitation period): In 2018, Canada attempted to sell the lots at reduced prices, indicating it already knew they were allegedly unsellable at market value. Since all elements of the claim were present by 2018, the January 2020 lawsuit was time-barred.

Conclusion

• Claim dismissed.
• Legal costs awarded to the City of St-Georges.