REAL PROPERTY REPORTS Fifth Series/Cinqui`eme s´erie Recueil de jurisprudence en droit immobilier VOLUME 52 (Cited 52 R.P.R. (5th)) EDITORS-IN-CHIEF/REDACTEURS´ EN CHEF Jeffrey W. Lem, B.COMM., LL.B., LL.M. John Mascarin, M.A., LL.B. Director of Titles for the Province of Ontario Aird & Berlis LLP Toronto, Ontario Toronto, Ontario QUEBEC EDITOR/REDACTEUR´ POUR LE QUEBEC´ Fredric Carsley, B.A., B.C.L., LL.B. De Grandpr´e Chait LLP/s.e.n.c.r.l. Montr´eal, Qu´ebec ASSOCIATE EDITORS/REDACTEURS´ ADJOINTS Reuben M. Rosenblatt, Q.C., LSM Bruce Ziff, B.A., LL.B., M.LITT. Minden Gross LLP Faculty of Law, University of Alberta Toronto, Ontario Edmonton, Alberta Paul De Francesca, B.A.A., LL.B. Craig R. Carter, B.SC., LL.B., LL.M. De Francesca Law Office Fasken Martineau DuMoulin LLP Toronto, Ontario Toronto, Ontario CARSWELL EDITORIAL STAFF/REDACTION´ DE CARSWELL Cheryl L. McPherson, B.A.(HONS.) Director, Primary Content Operations Sarah Bourne, B.A., LL.B. 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ISSN 0703-4687 ISBN 978-0-7798-3195-1 Printed in Canada by Thomson Reuters CARSWELL, A DIVISION OF THOMSON REUTERS CANADA LIMITED One Corporate Plaza Customer Relations 2075 Kennedy Road Toronto 1-416-609-3800 Toronto, Ontario Elsewhere in Canada/U.S. 1-800-387-5164 M1T 3V4 Fax 1-416-298-5082 www.carswell.com Contact www.carswell.com/contact Soboczynski v. Beauchamp 175 [Indexed as: Soboczynski v. Beauchamp] Adam Soboczynski and Olga Soboczynski, Respondents and Don Beauchamp and Louise Beauchamp, Appellants Ontario Court of Appeal Docket: CA C58106 2015 ONCA 282 Alexandra Hoy A.C.J.O., Gloria Epstein, C.W. Hourigan JJ.A. Heard: November 4, 2014 Judgment: April 23, 2015 Real property –––– Sale of land — Agreement of purchase and sale — Inter- pretation of contract — Miscellaneous –––– Parties entered into agreement of purchase and sale (APS), which contained entire agreement clause — Vendors signed seller property information statement (SPIS), in which they stated that property was not subject to flooding and that they would inform purchasers of any “important changes” prior to closing — Vendors did not disclose subse- quent flood in basement — After transaction closed, basement flooded again — Purchasers brought successful action against vendors for damages based on neg- ligent misrepresentation — Vendors appealed — Appeal allowed — Given that entire agreement clause operated retrospectively, not prospectively, representa- tions made in SPIS were actionable because SPIS was completed after APS had been signed — However, evidence did not support finding that purchasers relied on representations that formed basis of their claim. Torts –––– Fraud and misrepresentation — Negligent misrepresentation (Hedley Byrne principle) — Particular relationships — Sale of land –––– Parties entered into agreement of purchase and sale (APS), which contained en- tire agreement clause — Vendors signed seller property information statement (SPIS), in which they stated that property was not subject to flooding and that they would inform purchasers of any “important changes” prior to closing — Vendors did not disclose subsequent flood in basement — After transaction closed, basement flooded again — Purchasers brought successful action against vendors for damages based on negligent misrepresentation — Vendors ap- pealed — Appeal allowed — Evidence did not support finding that purchasers relied on representations that formed basis of their claim. Cases considered by Gloria Epstein J.A.: BG Checo International Ltd. v. British Columbia Hydro & Power Authority (1993), 1993 CarswellBC 1254, [1993] 2 W.W.R. 321, [1993] 1 S.C.R. 12, 147 N.R. 81, 75 B.C.L.R. (2d) 145, 99 D.L.R. (4th) 577, 20 B.C.A.C. 241, 176 REAL PROPERTY REPORTS 52 R.P.R. (5th) 35 W.A.C. 241, 14 C.C.L.T. (2d) 233, 5 C.L.R. (2d) 173, 1993 CarswellBC 10, EYB 1993-67096, [1993] S.C.J.