EDM Holdings Ltd. v. Stearman Construction Management Inc.

EDM Holdings Ltd. v. Stearman Construction Management Inc.

Stearman failed to conclusively satisfy the Parmenter evidentiary onus in respect of certain third-party expenses and the extent of markup on labour; the adjudicator accepted the hours billed but found the labour rates quoted to the owner already included markup and reduced the hourly rates to midpoints ($80/$55/$40) removing an additional 15% markup, disallowed 75% of gasoline claims (allowing 25%), deducted $1,000 for improperly charged materials, recalculated totals and awarded Stearman $7,434.21 plus an order to deliver warranty paperwork; no costs and no prejudgment interest awarded.

Citation
2011 NSSM 40
Parties
Claimant: EDM Holdings Limited; Claimant: EDM Environmental Design and Management Limited; Defendant: Stearman Construction Management Inc.
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
30 May 2011
Procedural Posture
Small Claims Court Construction Contract Dispute / Decision (after Hearing)
Outcome
Judgment for defendant-by-counterclaim (Stearman Construction Management Inc.) against EDM Holdings Limited for $7,434.21; directed delivery of warranty paperwork; no costs and no prejudgment interest.
Legal Topics
Cost Plus Contract, Accounting and Audit of Contractor Charges, Labour Rate Markup, Allocation of Third Party Expenses, Price Estimates/price Cap, Discovery/delivery of Warranty Paperwork
Source Language
English
Contract Law Construction Law Commercial Law Civil Procedure Evidence Cost Plus Contract Accounting and Audit of Contractor Charges Labour Rate Markup +3 more

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Parties

EDM Holdings Limited

Claimant

EDM Environmental Design and Management Limited

Claimant

Stearman Construction Management Inc.

Defendant

Procedural Posture

Small Claims Court Construction Contract Dispute / Decision (after Hearing)

Legal Issues

  1. 1 Whether the contractor met the evidentiary onus for a cost-plus contract claim
  2. 2 Whether specific third-party expenses (notably gasoline and listed materials) were direct project costs
  3. 3 Whether labour rates billed included an unauthorized additional 15% markup

Ratio Decidendi

Stearman failed to conclusively satisfy the Parmenter evidentiary onus in respect of certain third-party expenses and the extent of markup on labour; the adjudicator accepted the hours billed but found the labour rates quoted to the owner already included markup and reduced the hourly rates to midpoints ($80/$55/$40) removing an additional 15% markup, disallowed 75% of gasoline claims (allowing 25%), deducted $1,000 for improperly charged materials, recalculated totals and awarded Stearman $7,434.21 plus an order to deliver warranty paperwork; no costs and no prejudgment interest awarded.

Court Disposition

Judgment for defendant-by-counterclaim (Stearman Construction Management Inc.) against EDM Holdings Limited for $7,434.21; directed delivery of warranty paperwork; no costs and no prejudgment interest.

Orders

  • EDM Holdings Limited shall pay Stearman Construction Management Inc. $7,434.21
  • Stearman Construction Management Inc. shall deliver supplier invoicing and warranty paperwork for HVAC and toilet/pump to EDM Holdings Limited