Alkok v. Grymek et al.

Alkok v. Grymek et al.

Owners did not have sufficient grounds to terminate; contractor's failure to satisfy the architect about subcontractor payments was an ancillary breach enforceable by withholding payments, not a breach going to the root. Contractor was entitled to recover on a quantum meruit: $11,042.50 (value of work) plus $2,495 storm repairs and $950 extras, less $2,320 of liens paid by owners, subject to deduction for minor defect rectification to be determined on reference to the Master.

Citation
[1968] SCR 452
Parties
Plaintiff/appellant: Arnold Alkok; Defendant/respondent: Issie Grymek; Defendant/respondent: Yetta Grymek
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
1 April 1968
Procedural Posture
Contract / Mechanics' Lien Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario
Outcome
Appeal allowed; cross-appeal dismissed.
Legal Topics
Termination for Breach, Quantum Meruit, Architect's Certificate, Subcontractor Payment Obligations, Instalment Payment Provisions, Costs of Completion, Deduction for Defect Rectification
Source Language
English
Contract Construction Law Mechanics' Lien Remedies Damages Termination for Breach Quantum Meruit Architect's Certificate +4 more

Case Brief

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Parties

Arnold Alkok

Plaintiff/appellant

Issie Grymek

Defendant/respondent

Yetta Grymek

Defendant/respondent

Procedural Posture

Contract / Mechanics' Lien Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario

Legal Issues

  1. 1 Whether owners were justified in terminating the building contract
  2. 2 Whether contractor breached a term going to the root of the contract
  3. 3 Whether failure to satisfy architect as to subcontractor payments justified termination

Ratio Decidendi

Owners did not have sufficient grounds to terminate; contractor's failure to satisfy the architect about subcontractor payments was an ancillary breach enforceable by withholding payments, not a breach going to the root. Contractor was entitled to recover on a quantum meruit: $11,042.50 (value of work) plus $2,495 storm repairs and $950 extras, less $2,320 of liens paid by owners, subject to deduction for minor defect rectification to be determined on reference to the Master.

Court Disposition

Appeal allowed; cross-appeal dismissed.

Orders

  • Master's report amended by deleting $1,125 and inserting $12,167.50 unless respondents within 30 days refer to the Master to determine cost of correcting minor defects, in which event the figure will be $12,167.50 less the cost so found
  • Reference to the Master to determine cost of correcting defects if respondents elect to proceed; costs of the reference to be determined by the Master