Canada Case Law

Liannu Limited Partnership v. Modspace Financial Services Canada Ltd.

Court

Newfoundland and Labrador Court of Appeal

The applications judge erred by subordinating the Mechanics' Lien Act's gate-keeping necessity requirement to the general Rule 12 joinder test; he failed to explain why each proposed third party was necessary to the summary and least-expense disposition mandated by the Act. The order adding six third parties was set aside.

Source excerpt

• Third party joinder
• Consolidation
• Summary proceedings
• Leave to appeal
• Proportionality
• Statutory interpretation

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Metal World Inc. v. Pennecon Energy Ltd.

Court

Newfoundland and Labrador Court of Appeal

Leave to appeal was required and granted; Mr. White's affidavit was on its face compliant with s.17(2) but the applications judge erred in refusing cross-examination and failing to address Metal World's uncontradicted allegations that the lien was grossly exaggerated and prejudicial; the appropriate remedy is to remit the matter to the Trial Division to permit cross-examination on the affidavit and for case management orders to ensure expeditious resolution; setting a trial date is a directory imperative to be exercised in context.

Source excerpt

• Mechanics' lien
• Leave to appeal
• Affidavit requirements
• Allegation of exaggerated claim
• Cross-examination on affidavit
• Trial scheduling

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Ocean Mechanical Inc. v. Solid Homes Construction Ltd.

Court

Nova Scotia Small Claims Court

On the balance of probabilities the adjudicator accepted the September 10, 2008 agreement as the operative contract for $79,000 plus HST, allowed specified extras (invoice 249), accepted certain credits supported by evidence (booster fans $2,661.15; heat pumps material $8,181.86 plus installation $2,782.54; Fantech $1,841.90; ductwork $15,594.00; deficiencies $932.35), rejected the defendant's broad damages claim for lack of support, computed total credits of $31,993.80 against amounts claimed and found an overpayment in favor of the defendant of $1,511.49, and declined to award costs.

Source excerpt

• Contract interpretation
• Payment and credits
• Delay and deficiencies
• Counterclaim
• Quantification of damages

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Fougere v. Enfield Hardware Ltd.

Court

Supreme Court of Nova Scotia

Applying the Court's discretion under the old Rules and the principles in Bevis, the Court found Scotian Homes largely successful, that the Fougeres' conduct (overbroad and partly remediated claims, lack of timely expert evidence, causing adjournments, and damaging publicity) increased trial length and costs, and that a lump sum of $28,000 including disbursements was an appropriate substantial but partial indemnity to be paid by the Fougeres to Scotian Homes.

Source excerpt

• Costs
• Lump sum costs
• Disbursement
• Counterclaim
• Adjournment
• Expert evidence

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Garden Crest Developments Ltd. v. W. Eric Whebby Ltd

Court

Nova Scotia Court of Appeal

The Court upheld the Chambers judge: s.21(1) permits correction of an erroneous date in a claim for lien where evidence establishes the true date and there is no prejudice to the owner, and once corrected the lis pendens and action fell within the statutory 90‑day (and 45‑day where applicable) periods, so the lien remains valid; appeal dismissed.

Source excerpt

• Rectification of claim for lien
• Registration timelines (45/90 days)
• Substantial compliance/curative provision
• Prejudice requirement
• Interlocutory review

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LeBrun v. Woodward

Court

Nova Scotia Court of Appeal

Denied transcript funding because no oral testimony existed and the statutory precondition (a filed legal opinion showing reasonable grounds) under Rule 5.17(2)(c) was not met; refused to dispose of the appeal on Registrar's motion for dismissal based on alleged mootness because that is a merits question for a panel and fairness required fuller argument and representation; instead the court set firm deadlines to perfect the appeal and directed that failure to comply would permit respondents to seek dismissal without further notice.

Source excerpt

• Dismissal for non‑perfection
• Transcript funding
• Mootness
• Statutory limitation under mechanics' lien act

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Olympic Towers Ltd. v. Sherman et al.

Court

Supreme Court of Canada

La Cour suprême a accueilli la motion en radiation: la demande d’autorisation était un moyen dilatoire et un abus de procédure au sens de l’art. 46.

• Leave to appeal
• Quash proceedings
• Abuse of process
• Adjournment refusal
• Jurisdiction of supreme court
• Leave-to-appeal

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Prince Albert Pulp Co. Ltd. et al. v. The Foundation Company of Canada, Ltd.

Court

Supreme Court of Canada

The Supreme Court held that a completion certificate did not bar a $200,000 set-off for construction defects and varied interest to Foundation’s borrowing rates.

• Cost‑plus contract
• Final certificate of completion
• Assessment of damages by estimate
• Award of interest for wrongful withholding
• Interpretation of interest act
• Judgment interest under supreme court act

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Alwinsal Potash of Canada Ltd. v. Gettle Bros. Construction Co.

Court

Supreme Court of Canada

The Supreme Court of Canada held that the contractor was justified in abandoning the work and could recover on a quantum meruit basis, with interest.

• Quantum meruit
• Abandonment of work
• Interest
• Contract termination
• Construction defects
• Quantum-meruit

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Alkok v. Grymek et al.

Court

Supreme Court of Canada

The Supreme Court of Canada held the owners lacked grounds to terminate a building contract and allowed the contractor to recover on a quantum meruit basis.

• Termination for breach
• Quantum meruit
• Architect's certificate
• Subcontractor payment obligations
• Instalment payment provisions
• Costs of completion

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