Canada Case Law

Clarity Architectural Products Inc. v. Gryphon Corporate Construction Ltd.

Court

Supreme Court of British Columbia

The defendant's conduct (direction to pause, non-payment of the Second Invoice, failure to return shop drawings, and engaging a replacement subcontractor while leaving the subcontractor under the impression work would continue) objectively amounted to repudiation of the Subcontract; the plaintiff validly accepted that repudiation by June 12, 2024; therefore the plaintiff is entitled to expectation damages rather than the limited recovery available under a prospective termination for convenience. Damages awarded consist of the unpaid Second Invoice ($664,071.46) recoverable as a debt and under…

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• Repudiation
• Termination for convenience
• Expectation damages
• Interest
• Honest performance/good faith
• Mediation default

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Gill v. Sandhar

Court

Supreme Court of British Columbia

The court dismissed an application to set aside a summary-trial judgment, finding the defendants failed to show a meritorious defence and that justice required reopening the order.

• Setting aside judgment
• Default judgment
• Summary trial
• Liquidated damages
• Settlement agreement
• Costs

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1003730 B.C. Ltd. v. 0969939 B.C. Ltd.

Court

Supreme Court of British Columbia

The court summarily assessed damages after default judgment in a hotel construction dispute, awarding most claimed amounts but refusing a lost-profits claim on affidavit evidence.

• Breach of contract
• Breach of fiduciary duty
• Negligent misrepresentation
• Summary assessment of damages
• Default judgment
• Assessment on affidavit

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Cakwell Ergonomic Solutions Inc. v. Melnik

Court

Supreme Court of British Columbia

Construction dispute over renovation extras and delay. The court found Dr. Melnik was a party to the contract, allowed some extras, and awarded Cakwell a net judgment after set-off.

• Contract interpretation
• Change orders and extras
• Implied terms and completion time
• Assessment of damages for delay
• Unjust enrichment vs contractual recovery
• Credibility and evidentiary weight

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IMH 415 & 435 Michigan Apartments Ltd. v. Unique Restoration Ltd.

Court

Supreme Court of British Columbia

The court dismissed a late application for security for costs against an insolvent defendant by counterclaim, finding the delay and likely prejudice outweighed the request.

• Security for costs
• Litigation funding
• Insolvency proposal
• Set off
• Delay in bringing applications
• Security-for-costs

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Arguson Projects Inc. v. Gil-Son Construction Limited

Court

Nova Scotia Court of Appeal

The motion judge erred by conflating questions of law with disputes of material fact; on the undisputed record the appellant made a written decision under SCC 8.1.1, the respondent failed to serve the required Notice in Writing within 7 working days as required by SCC 8.2.1 and therefore was conclusively deemed to have accepted the decision and released its claim; SCC 8.3.2 does not negate the contractual condition precedent; summary judgment granting dismissal of the respondent's claim was appropriate.

Source excerpt

• Summary judgment on evidence
• Condition precedent
• Contractual notice requirements
• Waiver
• Builders' lien
• Shannex test

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Gamma Windows and Wall International Inc. v. Queen’s Marque Developments Limited

Court

Supreme Court of Nova Scotia

The Court allowed Gamma's application to abridge the notice period under Rule 2.03 because the delay was short (three clear days), the proposed amendments were materially connected to Gamma's defence against an imminent summary judgment, the prejudice to Gamma from refusal outweighed prejudice to Manulife, and any unfairness could be addressed by costs; accordingly Gamma may proceed with the amendment motion and Manulife is awarded costs for the abridgement application.

Source excerpt

• Abridgement of time
• Amendment of pleadings
• Summary judgment on the pleadings
• Lien priority
• Costs

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High Performance Energy Systems Inc v. Halifax (Regional Municipality)

Court

Nova Scotia Court of Appeal

Where parties are governed by an express contract the equitable remedy of unjust enrichment will not lie to circumvent contractual remedies or limitation periods; the motion judge correctly found the unjust enrichment claim was inextricably linked to the contract and therefore unsustainable, and High Performance's defence to HRM's crossclaim had no reasonable prospect of success because High Performance was primarily liable to the subcontractors.

Source excerpt

• Unjust enrichment
• Quantum meruit
• Limitation periods
• Strike pleadings
• Contribution and indemnity
• Abuse of process

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Conwest Contracting Ltd. v. Crown and Mountain Creations Ltd.

Court

Supreme Court of British Columbia

Construction contract dispute over excavation and shoring work, extras, delay, termination, and a builders’ lien. The court largely accepted Conwest’s and BelPacific’s claims, with a partial set-off for Crown.

• Termination and repudiation
• Delay and extension of time
• Change orders / extras
• Concealed or unknown conditions
• Quantum meruit
• Set-off

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Allterrain Contracting Inc. v. Grafton Developments Inc.

Court

Supreme Court of Nova Scotia

Contract No. 2 was a clear, executed change order that modified Contract No. 1 and released Allterrain from obligation to reinstate flat works in front of The Pearl; Grafton failed to prove its counterclaim on the balance of probabilities; accordingly Allterrain is entitled to judgment for its claimed amounts and may realize on the security Grafton posted to vacate the lien.

Source excerpt

• Contract interpretation
• Change order effect
• Lien security
• Counterclaim for completion costs
• Permit fee reimbursement
• Credibility of witnesses

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