Classic Building Cleaner v. Floors Plus

Classic Building Cleaner v. Floors Plus

The defendant was not entitled to terminate without notice because the performance issues did not amount to a fundamental breach or repudiation; however, the termination clause was held to be two months by virtue of the parties' subsequent conduct and representations, entitling the claimant to two months' notice effective end of March 2013, resulting in damages for March, April and May 2013 totaling $1,950; HST not chargeable on those damages.

Citation
2013 NSSM 55
Parties
Claimant: Classic Building Cleaner, a division of 3031551 Nova Scotia Limited; Defendant: Floors Plus
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
19 December 2013
Procedural Posture
Small Claims Court Breach of Contract / Decision (post Hearing)
Outcome
Claimant awarded damages and costs
Legal Topics
Termination, Notice, Repudiation, Damages, Service Contracts
Source Language
English
Contract Law Commercial Law Termination Notice Repudiation Damages Service Contracts

Case Brief

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Parties

Classic Building Cleaner, a division of 3031551 Nova Scotia Limited

Claimant

Floors Plus

Defendant

Procedural Posture

Small Claims Court Breach of Contract / Decision (post Hearing)

Legal Issues

  1. 1 Whether the defendant validly terminated the cleaning contract without notice
  2. 2 Whether the termination clause required six months or two months' notice
  3. 3 Whether deficiencies in performance amounted to a fundamental breach/repudiation

Ratio Decidendi

The defendant was not entitled to terminate without notice because the performance issues did not amount to a fundamental breach or repudiation; however, the termination clause was held to be two months by virtue of the parties' subsequent conduct and representations, entitling the claimant to two months' notice effective end of March 2013, resulting in damages for March, April and May 2013 totaling $1,950; HST not chargeable on those damages.

Court Disposition

Claimant awarded damages and costs

Orders

  • Defendant to pay the Claimant $1,950.00 for March, April and May 2013 (damages for wrongful termination).
  • HST is not chargeable on the damages award.