Cases - Jackson v Packham Real Estate Ltd et al.

Record details

Name

Jackson v Packham Real Estate Ltd et al.

Date

(1980)

Citation

109 DLR (3d) 277

Keywords

Estate agency

Summary

This is a case heard in the Ontario High Court of Justice. (The principles of agency law are the same in jurisdictions based on English common law.)

An agent, Jackson (no relation to the plaintiff) introduced Mr and Mrs Brenzil, prospective purchasers, to the plaintiff vendor. The Brenzils entered into a contract to buy the vendor's house for $85,000. Jackson had been a partner with the Brenzils in a real estate syndicate and had worked for them before. The day after the contract was made with the vendor, the Brenzils resold the property for $100,000 through Jackson at a rate of commission of 6% on exclusive agency terms (the usual rate for exclusive listing was 5%). The purchaser to whom the property was resold was introduced to the Brenzils by Jackson. The plaintiff sued Jackson (and the Brenzils) for damages for breach of fiduciary duty.

The judge found as fact that Jackson had encouraged the plaintiff vendor to sell property for $85,000 knowing of another purchaser who was interested in buying the property for $100,000. This enabled him to earn extra commission of $6,000. 'It is not difficult to draw the conclusion that Paul Jackson was motivated by greed', said Mr Justice Lerner. He held that it was a breach of the fiduciary relationship when Jackson failed to disclose to the plaintiff that other purchasers were likely prospects to pay more than the Brenzils's offer of $85,000. The plaintiff was awarded damages being the difference between $100,000 and $85,000 less the extra commission they would have had to pay on the higher sale price ($1,000).