Floors Plus v. Cleveland

Floors Plus v. Cleveland

The adjudicator found that Wayne's oral assurances that he would ensure payment amounted to a novation and, combined with the Claimant's continued supply in reliance on those assurances (part performance), removed the Statute of Frauds bar; accordingly Wayne is personally liable and judgment was entered for the Claimant against both Defendants jointly and severally for $6,754.73 plus costs $586.82.

Citation
2012 NSSM 15
Parties
Claimant: FLOORS PLUS (A DIVISION OF INSTALL-A-FLOR LTD); Defendant: WAYNE CLEVELAND; Defendant: CAREFREE CONTRACTING LTD.
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
26 April 2012
Procedural Posture
Small Claims Court / Decision Rendered After Hearing
Outcome
Judgment for the Claimant against both Defendants jointly and severally for the claimed amount and allowed costs.
Legal Topics
Guarantee, Personal Liability, Novation, Part Performance, Statute of Frauds
Source Language
English

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Parties

FLOORS PLUS (A DIVISION OF INSTALL-A-FLOR LTD)

Claimant

WAYNE CLEVELAND

Defendant

CAREFREE CONTRACTING LTD.

Defendant

Procedural Posture

Small Claims Court / Decision Rendered After Hearing

  1. 1 Whether Wayne Cleveland is personally liable for debts incurred by Carefree Contracting Ltd.
  2. 2 Whether an oral promise by Wayne constituted an enforceable guarantee or novation despite the Statute of Frauds
  3. 3 Whether part performance or other exceptions to the Statute of Frauds apply

Ratio Decidendi

The adjudicator found that Wayne's oral assurances that he would ensure payment amounted to a novation and, combined with the Claimant's continued supply in reliance on those assurances (part performance), removed the Statute of Frauds bar; accordingly Wayne is personally liable and judgment was entered for the Claimant against both Defendants jointly and severally for $6,754.73 plus costs $586.82.

Court Disposition

Judgment for the Claimant against both Defendants jointly and severally for the claimed amount and allowed costs.

Orders

  • Judgment for the Claimant in the amount of 6754.73 CAD against Wayne Cleveland and Carefree Contracting Ltd. jointly and severally.
  • Claimant awarded costs for filing and service in the amount of 586.82 CAD.