THUNDER BAY -- A Thunder Bay judge has ordered a local man to pay a woman nearly $6400 after he rescinded an offer to purchase her RV.
In June 2017 the plaintiff put the trailer up for sale for $25,000.
She reached a verbal agreement with the defendant near the end of June to sell it to him for $20,000.
Because her husband worked out of town and couldn't sign over the ownership for several weeks, the parties agreed that the buyer would provide the woman with a post-dated cheque for the full amount. In the meantime, she would maintain insurance on the RV so the purchaser could use it.
The defendant picked up the trailer and had possession over the ensuing weeks, but near the end of July his cheque was returned as "not sufficient funds," and he still didn't have the ownership paper. He told the woman he was not prepared to pay until he had the document.
As the Small Claims Court judge who heard the case noted in his decision, "That was where events really went sideways, and the parties have differing versions as to what was said or agreed next."
According to the plaintiff, the parties agreed she would get the ownership transfer couriered from her husband within three days, and would deliver it to the buyer in exchange for a new cheque.
The defendant said he only told the woman that "we'll need to talk when I get home."
He explained in court that he had already made up his mind that he no longer trusted her, and intended to return the trailer and terminate the deal.
After the man dropped it off at her residence, the woman put the RV back up for sale but only received $18,000 for it.
In his ruling, the judge said parties to a contract must perform the contract in good faith. By saying 'We will talk Monday,' and then unilaterally returning the trailer the day before, he said the defendant had not acted in good faith.
The judge noted that the man "was not deprived of the value of his bargain by waiting until Monday for the ownership paper. His own evidence indicated a willingness to discuss the matter Monday. He still had the trailer, which he had use of for the month of July."
Although he stated that the seller's "performance with obtaining the ownerships may have been imperfect," the judge said there was no evidence that the buyer would suffer any loss or disadvantage by waiting to see if the ownership was forthcoming.
He awarded the woman $2,000 for her loss on the sale of the RV, $100 for a towing charge, and $4,275 as a rental fee.
