Facts - Remedies

Aaron saw that Bevan had advertised a rundown house for sale. Aaron inspected it. During the inspection, Bevan falsely represented that the house was designed by Christine Cornwall, a famous architect. This statement was not promissory and did not become a term of the contract. It was also not made in trade or commerce. Bevan knew that, in fact, the house was designed by a student of Christine Cornwall, Dora D'Eath.

Aaron thought himself a specialist in architecture - spoiler alert: he wasn't - and did his own negligent assessment of the house. His assessment

informed his belief that the house was designed by Christine Cornwall. He decided to buy it and restore it to its former glory.

Aaron entered a contract with Bevan to purchase Bevan's residential home for $500,000. A house designed by Dora D'Eath in the same condition was worth $450,000.

The parties settled, Aaron became the registered owner and moved in.

Aaron hired Everyday Builders to restore the house for $20,000. Everyday Builders expressly promised to use original materials in accordance with the materials originally used to construct the house.

Aaron paid a $2,000 deposit. Everyday Builders completed the work. However, they used cheap substitute materials to save money. The finished work looked authentic if not closely inspected. Aaron paid to Everyday Builders the balance of the price for the restoration work.

Some time later, Aaron noticed that something was not quite right with the materials used to restore the house. Aaron hired Farrelly & Co, another builder, to inspect the work done by Everyday Builders. Farrelly & Co confirmed that Everyday Builders had used cheap substitute materials. Farrelly & Co also informed Aaron that the house was not designed by Christine Cornwall but rather was designed by Dora D'Eath.

Farrelly & Co said that they could remove the work done by Everyday Builders and restore the house with original materials for $45,000. The house - after the work done by Everyday Builders - was worth $470,000. If Everyday Builders had used proper original materials, it would have been worth $485,000.

Aaron does not think that he could suffer through another restoration and is seriously considering just selling the property. Aaron also pulled out of a competition he had entered with the Historical Homes Society for the 'Best Authentic Restoration Project' of 2021. His home had been short - listed as one of ten finalists and he could have won $50,000 for the restoration of his home. However, the rules required that the restoration be done with original materials.

Question 1 (1 mark)

What common law cause of action does Aaron have against Bevan for damages? Briefly explain your choice.

Question 2 (5.5 marks)

Aaron wishes to sue for damages in the cause of action that you have identified in Question 1. What test of causation and remoteness would you apply? How much would you award him in damages?

Question 3 (9 marks)

Assume that when Bevan falsely represented that the house was designed by Christine Cornwall, he did not know that it was in fact designed by Dora D'Eath, but breached a duty of care owed to Aaron by making the statement. Continue to assume that the statement was not promissory and was not made in trade or commerce. Aaron wishes to sue for damages. How would your response to Question 2 change?

Your response should identify and justify the cause of action, and note any changes to the approach to causation, remoteness, and assessment of damages.