Desjardins v. KAL Developments

Desjardins v. KAL Developments

The contract was a cost-plus agreement obliging payment of direct costs plus $10,000 profit and required the contractor to keep and produce proper records; the Defendant failed to produce adequate records and thus failed to discharge the onus of proving its claimed costs, the Claimant proved he was overcharged, and the appropriate remedy within Small Claims jurisdiction is an award of $25,000 plus modest costs; the Defendant's counterclaim is dismissed for lack of evidence.

Citation
2025 NSSM 85
Parties
Claimant: Pascal Desjardins; Defendant: KAL Developments Limited
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
17 December 2025
Procedural Posture
Small Claims / Decision
Outcome
Claimant succeeds in part; Defendant ordered to pay damages and modest costs; Defendant's counterclaim dismissed.
Legal Topics
Cost Plus Contracts, Breach of Contract, Implied Terms, Evidence and Burden of Proof, Overbilling, Counterclaim Dismissed
Source Language
English
Contract Construction Civil Procedure Damages Cost Plus Contracts Breach of Contract Implied Terms Evidence and Burden of Proof +2 more

Case Brief

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Parties

Pascal Desjardins

Claimant

KAL Developments Limited

Defendant

Procedural Posture

Small Claims / Decision

Legal Issues

  1. 1 Whether the parties' agreement constituted a cost-plus contract and what terms should be implied
  2. 2 Whether the Defendant breached the contract by overcharging and failing to keep proper records
  3. 3 What evidentiary burden applies to a contractor under a cost-plus arrangement

Ratio Decidendi

The contract was a cost-plus agreement obliging payment of direct costs plus $10,000 profit and required the contractor to keep and produce proper records; the Defendant failed to produce adequate records and thus failed to discharge the onus of proving its claimed costs, the Claimant proved he was overcharged, and the appropriate remedy within Small Claims jurisdiction is an award of $25,000 plus modest costs; the Defendant's counterclaim is dismissed for lack of evidence.

Court Disposition

Claimant succeeds in part; Defendant ordered to pay damages and modest costs; Defendant's counterclaim dismissed.

Orders

  • KAL Developments Limited must pay the Claimant damages of $25,000
  • KAL Developments Limited must pay filing costs of $199.35