Case information

Civil procedure — Abuse of process — Application to dismiss — Standard for assessing latent or apparent nature of defect — Whether there is presumption of liability of building inspector if defect is discovered after inspection.

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

The respondents hired the applicant to inspect an immovable that they wished to put an offer on. The inspector conducted a brief inspection and did not find any apparent defect. The respondents therefore proceeded to purchase the immovable. However, it was subsequently discovered that there was a major problem with the immovable requiring renovations and restoration work. The respondents brought an action in professional liability against the applicant company alleging various faults surrounding the inspection. In response, the applicant filed a motion to dismiss the originating application, including for abuse of procedure.

The trial judge allowed the applicant’s application. He found that the respondents’ application lacked a foundation in law and had little chance of success. The Court of Appeal unanimously allowed the appeal and set aside the trial judge’s decision. It noted that the trial judge should have acted with caution before putting an end to the case at an early stage.