Heavenly Stairs and Custom Interiors Limited v. 3303743 Nova Scotia Limited

Heavenly Stairs and Custom Interiors Limited v. 3303743 Nova Scotia Limited

The subcontractor was dismissed for non‑workmanlike performance and therefore is not entitled to lost profit; materials ordered by the subcontractor were procured to satisfy Heavenly Stairs’ contract and so belong to Heavenly Stairs, with the advance offset by proven expenditures and credited returns, resulting in a net award to Heavenly Stairs.

Citation
2019 NSSM 57
Parties
Claimant (defendant by Counterclaim): Heavenly Stairs and Custom Interiors Limited; Defendant (claimant by Counterclaim): 3303743 Nova Scotia Limited
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
4 November 2019
Procedural Posture
Small Claims Court / Decision
Outcome
Claim allowed in part; Counterclaim dismissed.
Legal Topics
Subcontractor Liability, Advance Payment and Offsets, Return of Special‑order Materials, Lost Profits Claim, Good and Workmanlike Performance
Source Language
English
Contract Law Agency Construction/building Disputes Remedies Mitigation Subcontractor Liability Advance Payment and Offsets Return of Special‑order Materials +2 more

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Parties

Heavenly Stairs and Custom Interiors Limited

Claimant (defendant by Counterclaim)

3303743 Nova Scotia Limited

Defendant (claimant by Counterclaim)

Procedural Posture

Small Claims Court / Decision

Legal Issues

  1. 1 Was the subcontractor entitled to lost profits after termination for defective performance?
  2. 2 Did the subcontractor act as agent in ordering materials, and who owns unused special‑order materials?
  3. 3 Whether the advance payment must be returned or offset by expenditures and credits

Ratio Decidendi

The subcontractor was dismissed for non‑workmanlike performance and therefore is not entitled to lost profit; materials ordered by the subcontractor were procured to satisfy Heavenly Stairs’ contract and so belong to Heavenly Stairs, with the advance offset by proven expenditures and credited returns, resulting in a net award to Heavenly Stairs.

Court Disposition

Claim allowed in part; Counterclaim dismissed.

Orders

  • Counterclaim dismissed.
  • Heavenly Stairs awarded a net sum of $1,067.15.