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ARTICLE · 14 DECEMBER 2021

Agreements Subject To Environmental Conditions: A Cautionary Tale

Miller Thomson
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A recent decision from the Ontario Superior Court of Justice provides a cautionary tale for those who engage in agreements subject to an environmental remediation condition.

CanadaReal Estate and Construction
Michael McCluskey
Michael McCluskey
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A recent decision from the Ontario Superior Court of Justice provides a cautionary tale for those who engage in agreements subject to an environmental remediation condition.

Background: 384130 Ontario Limited v. 520611 Ontario Limited

In 2003, the plaintiff entered into the agreement to purchase the defendant's property for $415,000. Pursuant to the contract, the plaintiff paid a deposit to the defendant, as well as an additional cost to enable the defendant to remediate the environmental contamination of his property, as the agreement required. The plaintiff also began occupying the property for the operations of his auto repair business, and paid monthly rent to the defendant, subject to the closing of the condition. Both parties agreed that the remediation was subject to the satisfaction of the Ontario Ministry of the Environment, Conservation and Parks (the "Ministry").

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