An Ontario judge has handed down a record high damages award in a case involving a breach of a single-family residential real estate purchase.

In a decision released in December 2025, Justice Paul Sweeny awarded the seller a staggering $2,385,000 representing his losses on the resale of the property and carrying costs of $550,000. The seller was also awarded interest on the court award and almost $21,000 in court costs.

The case dates back to May 2023, when Trivelle Simpson agreed to buy a luxury home on Cumberland Dr. in Port Credit from Krishna Menon for $8,385,000. Published listings describe the home as having five bedrooms, with a waterfront lot size of 50 by 247 feet, and title to the adjoining bed of Lake Ontario stretching 300 feet into the lake.

The buyer was unable to close the transaction on the scheduled date, and the parties agreed to two further extensions. Ultimately, the sale was not completed, and the seller sold the property to another buyer for $6,550,000 — representing a loss of $1,835,000.

Toronto real estate and litigation lawyer Greg Weedon sued the buyer for damages resulting from the breach of contract. He brought an application for summary judgment which allows a court to rule on documentary evidence without the need for a full trial and oral evidence. This typically happens when there is no genuine dispute about the facts.

The seller presented evidence that the property was promptly relisted for sale, that prices were adjusted as the market softened, that leasing options were considered, and that marketing efforts targeted high-end buyers.

The buyer argued that the seller failed to mitigate his damages, meaning that he should have done more to reduce his losses.

The buyer did not dispute the seller’s $550,000 carrying costs but argued that he should have been able to resell the property for at least $7 million with a $2 million vendor-take-back mortgage.

The buyer produced no appraisal or expert evidence to show that the resale price was unreasonable.

Under British law dating back as far as 1854, when a buyer breaches an agreement of purchase and sale, the courts will attempt to place the seller in the position they would have been in had the contract been completed as written. This is known as the loss of the benefit of the bargain.

In the Menon v. Simpson case, the facts were essentially not in dispute. The sole issue was mitigation. The onus was on the buyer to prove that the seller failed to make reasonable efforts to mitigate and that mitigation was possible. Ruling in favour of the seller, Justice Sweeny granted summary judgment, finding there was no genuine issue requiring a trial.

The decision sends a stark message to buyers of luxury homes: deposits are only the beginning. If market values decline, the defaulting buyer’s financial exposure can extend into seven figures.

For sellers, the court ruling confirms that reasonable — not perfect — efforts to mitigate damages are required, as long as the seller can provide clear documentation of marketing and resale efforts.

An online database search of Ontario damage awards this week in residential cases revealed nothing even close to an award of more than $1 million, so at $2,385,000 this case has established a record for damages in a residential case.

The case underscores the steep financial consequences of backing out of a high-end real estate purchase — especially in a declining market.