Sanghera v. Danger Figure Centre (Burnaby) Ltd., 2007 BCSC 1308

Sale of a Business – Fraudulent Misrepresentation: We represented the plaintiffs in their action to recover $563,001 in damages for losses sustained due to relying on fraudulent representations about the beauty spa business they had purchased from the defendants. The business failed and was closed within six months of the purchase. The Court ruled that the defendants were liable for the $563,001 claimed plus interest and costs. The defendant had fraudulently misrepresented the number and value of pre-paid treatments sold by the corporate defendant, amounting to up to $1 million in retail value. Furthermore, the defendants breached the terms of the written agreement of purchase and sale by failing to provide training and familiarization so as to enable the plaintiffs to operate the business. The court found that the defendant also intentionally misled the plaintiffs about the adequacy of the staff and was reckless and dishonest in representing that the plaintiffs would be charged the same price she paid for supplies. The Court ordered damages for loss of the purchase money and consequential loss. The plaintiff was entitled to the return of the amount it paid, after deducting the proceeds of sale of the equipment, plus business losses in operating the business.
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