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ARTICLE · 15 APRIL 2020

Beware Of Standard Clauses – The Lesson From Walton v. Warren

On January 9, 2020 the British Columbia Supreme Court found in favour of the Purchaser awarding costs against the Seller when an underground storage tank was discovered approximately 2½ years following closing ("Completion Date").

CanadaLitigation, Mediation & Arbitration

On January 9, 2020 the British Columbia Supreme Court found in favour of the Purchaser awarding costs against the Seller when an underground storage tank was discovered approximately 2½ years following closing ("Completion Date"). The judge made this finding despite the Purchaser obtaining a UST inspection report prior to closing finding no USTs. In coming to this conclusion, the Judge stated at paragraphs 62 and 63:

There is no language in the Addendum which could be interpreted as limiting the defendants' obligations only to those USTs that were discovered prior to the Completion Date or to those USTs of which they were aware.

The Addendum does not include any condition language. For example, it does not say that the defendants are to remove and remediate "any oil tank that is discovered prior to the Completion Date" or "any oil tank that they are aware of prior to the Completion Date."

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