Business Law Question (Based on Canada)
Allison was in the process of purchasing acreage for $500,000 where she planned to build a home. She retained the services of Reid, a lawyer, who is one of three partners in Dewy Cheetem & Howe, Limited Liability Partnership. In the course of completing the residential real estate transaction Reid failed to search and review the Certificate of Title for the property, an accepted process followed in transactions of this sort. The sale of the acreage was completed. The Certificate of Title contained an easement for the natural gas utility. When Allison made an application was made to the County of Wheatland to construct an access road the application was rejected as it crossed an easement recorded on title and of which Allison was unaware. As a result Allison could not build an access road to the home site from the paved road, but would have to build an access road from a poor quality gravel road. She would not have completed the transaction had she realized this was the case as access from the gravel road was inconvenient and also depreciated the value of the property by approximately $100,000. 1. Assess the potential liability to Reid and Dewy Cheetem & Howe? (2 Marks) 2. Identify two potential legal actions arising from the legal advice and for each determine: A. Cause of action (2 marks per action) B. The Plaintiff's argument (including applicable legal principles or tests) (5 marks per action) C. The Defendant's defence including applicable legal principles or tests (5 Marks per action) D. The probable outcome and remedies, if granted. (3 Marks per action) Allison was in the process of purchasing acreage for $500,000 where she planned to build a home. She retained the services of Reid, a lawyer, who is one of three partners in Dewy Cheetem & Howe, Limited Liability Partnership. In the course of completing the residential real estate transaction Reid failed to search and review the Certificate of Title for the property, an accepted process followed in transactions of this sort. The sale of the acreage was completed. The Certificate of Title contained an easement for the natural gas utility. When Allison made an application was made to the County of Wheatland to construct an access road the application was rejected as it crossed an easement recorded on title and of which Allison was unaware. As a result Allison could not build an access road to the home site from the paved road, but would have to build an access road from a poor quality gravel road. She would not have completed the transaction had she realized this was the case as access from the gravel road was inconvenient and also depreciated the value of the property by approximately $100,000. 1. Assess the potential liability to Reid and Dewy Cheetem & Howe? (2 Marks) 2. Identify two potential legal actions arising from the legal advice and for each determine: A. Cause of action (2 marks per action) B. The Plaintiff's argument (including applicable legal principles or tests) (5 marks per action) C. The Defendant's defence including applicable legal principles or tests (5 Marks per action) D. The probable outcome and remedies, if granted. (3 Marks per action)
