Steelix Builders Group Ltd. and 1119020 BC Ltd., real estate developers and purchasers, were involved in a significant real estate dispute arising from the collapse of a purchase and sale agreement for a Surrey land assembly.
The properties were originally acquired for approximately C$15 million, subject to a contractual condition requiring the vendors to obtain specific rezoning approvals. When the vendors failed to secure the required rezoning and sought to terminate the agreement, Steelix commenced proceedings seeking specific performance of the transaction or, alternatively, damages.
During the three-year rezoning period, the City of Surrey announced plans to extend the SkyTrain, including a station near the subject properties. As a result, the value of the land assembly increased substantially, reaching approximately C$46 million or more. The dispute therefore involved assets with significant market appreciation and substantial potential damages.
The matter involved complex factual and legal issues regarding the scope of the vendors' obligation to use commercially reasonable efforts to obtain the required rezoning approvals. The case was scheduled for a 25-day trial before ultimately settling in November 2025.
The dispute raised important questions concerning the interpretation and enforcement of "commercially reasonable efforts" clauses, specific performance remedies, and contractual obligations in development transactions. The matter highlights Fasken's experience advising clients in high-value real estate litigation involving significant development opportunities and rapidly appreciating assets.
Fasken represented Steelix Builders Group Ltd. and 1119020 BC Ltd. with a team led by Mark Pontin and Kaleigh Milinazzo (Litigation & Dispute Resolution).
Jurisdiction
- British Columbia
