Halifax Couple Cheated Out Of Their House Vindicated By The Court
HALIFAX–When Joanne Kimm and her husband Jack decided to sue Almadina, a Halifax real estate developer, they knew it was a David vs Goliath situation because companies have deeper pockets to keep a prolonged legal battle going.
Someone even set up a GoFundMe account for the Kimms after Huddle first covered the case.
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But Kimm said the two-year struggle was worth it, after the Supreme Court of Nova Scotia rejected Almadina’s appeal of the original $25,000 settlement in favour of the couple.
“I was so relieved. It was like a two-year nightmare was finally over,” Kimm told Huddle, after the appeal was rejected on May 30. “This has been weighing on us for so long and with my husband’s health issues, I’m glad it’s over.”
Jack, a navy veteran who served more than 20 years, was recently diagnosed with cancer, making the couple’s legal worries that much more burdensome. Even though the two-hour court session on May 30 led to a routine dismissal of Almadina’s appeal, Kimm estimates it will cost $5,000 in lawyer’s fees.
Kimm is hoping that whatever is left of the $25,000 can go toward a new house in a year or so. However, housing in Halifax has changed dramatically since they first went home-hunting in 2020.
“Everything has changed now; the prices have gone up. It might take a little bit longer to qualify based on the new market,” she said.
The Kimms’ ordeal began in May of 2020. They moved from Victoria, B.C. to Bedford, Nova Scotia in 2019. After living out of an apartment, the couple found an opportunity to pay for a yet-to-be built house in a subdivision on Honeygold Drive, in Spryfield.
The final cost would be $324,000–a steal by 2022 standards.
In the fall of 2020, however, the couple noticed that construction wasn’t progressing on the house the way it should have.
“In fact, nobody communicated with us about any delays. It was only upon us visiting the site that was realized something was amiss,” said Kimm.
Because of the delays, the Kimms had to get extensions from their mortgage provider. It was while they were waiting for final confirmation of a mortgage extension that Almadina, suddenly and without explanation, cancelled the contract.
They claimed they had the right to terminate the agreement with the Kimms because the couple technically didn’t have their approval for the mortgage. The Kimms were shocked at Almadina’s decision because it was the developer who was behind construction schedule to begin with.
Also, the Kimms’ lender gave every indication that approval on the mortgage extension was just days away.
In the original court decision in 2021, the adjudicator noted that Almadina made a huge profit by cancelling the contract. The developer was able to put the house back on the market and netted $456,000 in the second sale.
The small claims adjudicator noted that the Kimms should be owed the lost market value of the home. However, small claims decisions have a maximum settlement of $25,000 so, when calculating the settlement, the adjudicator gave roughly $9,000 for out-of-pocket expenses and nearly $16,000 for the lost home value.
The Kimms considered going to a higher court to sue for more than $100,000 but they figured it would cost too much time and money.
Even though it took two years and a lot of stress, Kimm says she wouldn’t do anything differently. She even encourages other people who were wronged in real estate deals to take action.
After her story first appeared on Huddle, one woman got in touch with Kimm sharing a similar experience in Halifax. The Kimms’ case was also cited in a January, 2022 court decision.
“It seems really scary, sometimes, to bring to light something you feel is wrong. But if you don’t speak up and try to fight it, you may regret it for the rest of your life,” said Kimm.
“And even though this has been a huge nightmare for us, I’m glad we went through it because maybe in the future this won’t happen to someone else.”
Huddle has made several requests to interview Almadina and the company’s lawyer. All were denied.
Derek Montague is a Huddle reporter in Halifax. Send him your feedback and story ideas: [email protected].