What is the common law liability of a developer for misrepresentation in a disclosure statement?
British Columbia, Canada
The following excerpt is from Owners, Strata Plan LMS 3851 v. Homer Street Development Limited Partnership, 2011 BCSC 569 (CanLII):
The Court of Appeal in its order of September 16, 2009 left for determination at trial as against the developers only the effect of this statement in the disclosure statement. In its reasons for judgment, 2009 BCCA 395, at para. 136, Levine J.A., writing for the court, dealt with the issue of common law liability of the developers for the statement and applied the criteria for establishing liability for negligent misrepresentation as set down in Queen v. Cognos Inc., 1993 CanLII 146 (SCC), [1993] 1 S.C.R. 87 at 110. In her introduction at para. 10, she stated her conclusion that the developers had negligently breached their express statutory representation that the disclosure statement constitutes true disclosure of all materials facts and their implied representation of objective reasonableness of the projections with respect to the impugned note.
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