Smithe Residences Ltd., a real estate developer, successfully pursued claims arising from a joint venture agreement for the development of a mixed-use residential and commercial high-rise project in Vancouver.
The litigation was commenced in 2017 and involved allegations relating to the profit-sharing provisions of the joint venture agreement. After Fasken was retained in late 2023, the matter was advanced to trial, with Smithe seeking substantial damages for breach of the agreement. Fasken secured several significant procedural victories, including awards of special costs against the defendants and favourable rulings on key pre-trial matters.
The matter proceeded to a 30-day trial before the Supreme Court of British Columbia from August to October 2025. On March 2, 2026, the Court released judgment in favour of Smithe. Together with interest and costs, the award exceeded C$7 million.
The case addressed novel issues concerning repudiation and whether a contracting party may terminate an agreement based on the reputation or conduct of an individual associated with the counterparty. The decision provided important guidance regarding contractual interpretation, termination rights, risk allocation, and the enforceability of joint venture agreements in complex real estate developments.
Fasken represented Smithe Residences Ltd. with a team led by Gavin Cameron (Litigation & Dispute Resolution), and included Paige Mueller (Litigation & Dispute Resolution).
Jurisdiction
- British Columbia
