Wanda Simek wins real estate commission hearing

On April 22, 2021, the British Columbia Supreme Court released their decision in Well Sing Property Development Ltd. v. MacDonald Platinum Marketing Ltd. (2021 BCSC 755). AMLC’s Wanda Simek represented MacDonald Platinum Marketing, a real estate brokerage firm specializing in the marketing of pre-construction residential developments, in a contractual dispute with the developer, Well Sing, over real estate commissions. 

The contract in question provided that Well Sing would pay Platinum commissions in exchange for marketing and sales services. Platinum provided these services, and successfully sold out 100% of the development in one day, at the highest price point per square foot ever achieved in Richmond for similar projects. 50% of the commissions were paid out by Well Sing; however, Well Sing advised that it would not authorize the other 50% of commissions pending the determination of a separate negligence claim against Platinum. This claim alleged that Platinum had undervalued the units in the development and sold them at a value lower than they were worth. 

At this hearing, Wanda successfully argued that Platinum had fulfilled its contractual obligations, and was contractually entitled to the commissions that had been earned upon the successful closing of each contract of purchase and sale. The court agreed that the developer was not entitled to tie up the commissions pending the determination of its negligence claim against Platinum, and had no equitable grounds to withhold payment as prejudgment security. The court ordered that the commissions be paid out to Platinum and also awarded Platinum its costs of the application. 

Congratulations Wanda!