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Construction law 2026 BCSC 889

The Owners, Strata Plan EPS1544 v. Royal & Sun Alliance Insurance Company of Canada and in French, Royal & Sun Alliance du Canada, Societe D'Assurances

The Receivership Funds Agreement did not substantially alter the landscape of the Condominium Action because its salient terms (receivership, insurer subrogation and cooperation obligations, and the insurer's undertaking to complete certain remedial work potentially using receiver funds) were already disclosed in the pleadings and correspondence; therefore immediate disclosure was not required and LHR's application for a stay or dismissal as an abuse of process was dismissed.

  • Subrogation
  • Breach of warranty
  • Abuse of process
  • Disclosure of settlement agreements
  • Receivership funds distribution
  • Negligence
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Civil procedure 2026 NSSC 128

Omega Formwork Inc. v. 778938 Ontario Limited

In Nova Scotia interlocutory procedural orders are not automatically subject to res judicata; however, a second motion to revisit consolidation may proceed only on judicial discretion and where the moving party shows a material change in circumstances or new evidence that seriously justifies reconsideration; Rule 37.05 permits severing parts of a proceeding including previously consolidated actions when that threshold is met; Omega failed to meet the threshold and the application to unwind consolidation was an abuse of process and therefore dismissed with costs.

  • Consolidation
  • Severance
  • Case management
  • Interlocutory motions
  • Res judicata
  • Issue estoppel
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Construction law 2026 BCSC 729

The Wallin Company Inc. v. Knappett Projects Inc.

Defendants established a prima facie case that the plaintiff lacks sufficient assets in British Columbia to satisfy a costs award because the plaintiff's BC-located assets are encumbered and readily removable and future contracts are speculative; the plaintiff failed to rebut by showing available assets, lack of arguable defence, or that security would stifle the action; accordingly the court ordered security for costs in the amount of $40,000, stayed the action until posted, gave 45 days to post the security, and awarded defendants costs of the application in the cause.

  • Security for costs
  • Builders' lien
  • Extra-provincial registration
  • Impecuniosity
  • Enforcement of costs orders
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Contract law 2026 BCSC 699

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

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…

  • Repudiation
  • Termination for convenience
  • Expectation damages
  • Interest
  • Honest performance/good faith
  • Mediation default
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Construction law 2026 BCSC 685

1866noentry.com Systems Ltd. v. Surrey (City)

The Court concluded the BCSC Action, insofar as it sought monetary relief duplicative of the Small Claims claim and beyond the cap which Intercon had expressly abandoned, constituted an abuse of process and must be struck; however Shimco lien claims against the statutory holdback are fora-specific to the Supreme Court and therefore may proceed but should be stayed pending resolution of the Small Claims Action; the registered builder's lien is extinguished for failure to commence Supreme Court proceedings within the one-year BLA deadline and the lien bond may be released to Graham.

  • Builders lien
  • Shimco lien
  • Abuse of process
  • Stay
  • Statutory limitation
  • Small claims jurisdiction
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Contract law 2026 BCSC 582

CHC Construction Ltd. v. He

The plaintiff breached the contract by wrongfully demanding payments outside the agreed progress payment schedule, refusing to complete the work unless paid, failing to perform the work in a good and workmanlike manner, and failing to complete within the 30 business days; the defendant did not breach and is entitled to damages to place him in the position had the contract been performed; damages awarded $9,384.37, plaintiff's claim dismissed, defendant's counterclaim allowed, builder's lien cancelled and costs to defendant.

  • Breach of contract
  • Repudiation
  • Progress payments
  • Workmanship
  • Extras
  • Damages
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Contract law 2026 BCSC 578

Element Restorations Ltd. v. Arruda

The contract contained an implied term that the plaintiff's project manager possessed sufficient skill to estimate costs; the plaintiff breached that term by using improper methodology, failing to review and adjust the budget, and failing to promptly notify the defendants of significant overruns; those breaches justified the defendants' termination and dismissal of the plaintiff's claim.

  • Breach of contract
  • Implied terms in estimates
  • Estimate accuracy and notification
  • Quantum meruit
  • Mitigation of damages
  • Costs
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Construction law 2026 NSSC 96

Integrum Painting v. BANC Investments Limited

The March 5, 2025 correspondence did not, on its proper objective construction and having regard to surrounding communications and conduct, amount to a contractual "finding" that would trigger GC 8.2.2; alternatively, the Respondent is estopped from asserting the March 5 letter was a finding because its words and conduct reasonably induced the Applicant to treat the communications as settlement negotiations; accordingly the Applicant's delay claim remains extant and the parties are entitled to pursue the contractually prescribed ADR or court processes under GC 8.2.7 and GC 8.3.1.

  • Delay claim
  • Notice requirements
  • Construction manager finding
  • Waiver
  • Mediation
  • Holdback
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Arbitration 2026 BCSC 558

2197 Otter Point Properties Nominee Ltd. v. GT Mann Contracting Ltd.

The December 19, 2024 without prejudice settlement letter is inadmissible for lack of a demonstrated exception (no evidence of detrimental reliance); the s.7 technical prerequisites are arguably met because 2197 Otter Point Properties is arguably a party to the contract and the subject matter is arbitrable; settlement offers (including references to Rule 9-1) do not, as a class, constitute steps in proceedings nor give rise to waiver or estoppel absent evidence of detrimental reliance; the entirety of the dispute, including claims against Graeme Mann, is sufficiently intertwined with the cont…

  • Stay of proceedings
  • Arbitration agreement
  • Without prejudice/settlement privilege
  • Representation estoppel
  • Waiver
  • Steps in litigation
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Construction law 2026 BCSC 562

Mazzei Electric Ltd. v. Aragon (English Inn) Development Corp.

The court refused to cancel the 2025 lien under s.25(2)(b) because Mazzei established an arguable right to a lien, but found the evidentiary record insufficient to support the full claimed quantum; exercising its discretion under s.24 the court ordered security of $350,000 to be paid into court for discharge of the lien and awarded costs to the defendant.

  • Lien cancellation
  • Security for lien
  • Abuse of process
  • Delay damages
  • Quantification of lien
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