Canada Case Law

CHC Construction Ltd. v. He

Court

Supreme Court of British Columbia

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.

Source excerpt

• Breach of contract
• Repudiation
• Progress payments
• Workmanship
• Extras
• Damages

Read case analysis

Singh v. Shareghi-Boroujeni

Court

Supreme Court of Nova Scotia

Although the rebuttable presumption in Rule 45.02(3) did not apply, the defendants proved they would have undue difficulty collecting an award of costs given the plaintiff’s unsatisfied judgments and lack of evidence of personal assets; accordingly the court exercised its discretion and ordered security for costs in modest, tariff‑based amounts ($4,000 for each lien action) rather than the full value of the liens.

Source excerpt

• Security for costs
• Builders' lien
• Rebuttable presumption
• Access to justice
• Costs estimation

Read case analysis

Solaris Custom Home Inc. v. Trovao

Court

Supreme Court of British Columbia

The court held the parties had an oral cost-plus construction contract, not a binding budget cap, and awarded Solaris the unpaid invoices plus a builders' lien.

• Cost-plus contract
• Oral contract
• Budget as contractual term
• Estimates
• Builder's lien
• Pre-judgment interest

Read case analysis

Iraca Construction Services Corp. v. Ghorbankhani

Court

Supreme Court of British Columbia

The court refused to cancel a builders’ lien for nominal security and required a $110,824.72 deposit, finding live disputes over the lien and counterclaim.

• Security for lien
• Section 24 builders lien act
• Cancellation of lien and cpl
• Counterclaim as relevant circumstance
• Builders-lien
• Construction-law

Read case analysis

Baker (Re)

Court

Supreme Court of British Columbia

The Supreme Court of British Columbia granted absolute discharges to two bankrupt applicants, rejecting objections based on asset value, undue preference, and alleged fraud.

• Absolute discharge
• S.173 bia grounds
• Undue preference
• Fraudulent breach of trust
• Personal guarantees
• Directors' liability

Read case analysis

Blackhawk Construction Limited v. Martin

Court

Supreme Court of Nova Scotia

The court held that Blackhawk's failure to comply with the security for costs order and the resulting prejudice to the defendants (inability to obtain financing to repair their home and indefinite encumbrance of title) constituted a proper ground under s.29(4) of the Builders' Lien Act to vacate the registration of the builders' lien; balancing of interests favored vacatur while preserving the defendants' counterclaim; costs of the motion were denied due to the defendants' improper social media campaign.

Source excerpt

• Vacating lien registration
• Security for costs
• Stay of proceedings
• Remedies

Read case analysis

Allterrain Contracting Inc. v. Grafton Developments Inc.

Court

Supreme Court of Nova Scotia

The court accepted Allterrain's evidence that the parties agreed to contractual interest at 2.5% per month compounded, awarded contractual interest from December 21, 2016 for 3.5 years in the amount of $12,748.01, declined to award the 10% per month claim, declined to increase costs for an offer made five days before trial because Rule 10.09 requires the offer at least seven days before trial, applied Tariff A and daily trial allowances, limited lien-related costs to 25% under s.41 of the Builders' Lien Act, and awarded total costs and disbursements to Allterrain of $25,892.49, resulting in G…

Source excerpt

• Contractual interest
• Costs awards
• Offer to settle
• Builders' lien act s.41
• Tariff costs

Read case analysis

1182604 B.C. Ltd. v. Orak Contracting Ltd.

Court

Supreme Court of British Columbia

The court held the builder’s lien was filed in time, the respondents’ managerial and preconstruction services were lienable, and cancelled the lien only on security.

• Time limit for filing lien
• Definition of improvement
• Lienable interest
• Security for lien under s.24 bla
• Preconstruction and managerial services
• Builders-lien

Read case analysis

New Light Construction Limited v. Smith

Court

Supreme Court of Nova Scotia

On the evidence Smith repudiated the contract without legal justification; New Light proved breach and is entitled to recover the outstanding contract balance, unpaid extras and loss of profit; Smith’s counterclaim and claimed set offs fail on the evidence.

Source excerpt

• Repudiation
• Damages
• Set off/credit
• Prejudgment interest
• Quantum of damages

Read case analysis

Liteco v. Nova Scotia (Transportation and Infrastructure Renewal)

Court

Supreme Court of Nova Scotia

The court found there was a sufficient undisputed factual scaffold to decide the legal questions under Rule 12. It held that Dora was not liable to pay the assignee Liteco because Dora had effectively paid project funds to Barkhouse which were passed to Liteco such that Liteco was paid in full and received more than the invoiced project amounts, and Liteco accepted those payments contrary to the joint cheque arrangement. Further, funds were impressed with a trust under the Builders' Lien Act and Liteco could not appropriate those trust funds to unrelated prior debts and then claim a lien for…

Source excerpt

• Equitable assignment
• Joint cheque agreement
• Application of payments
• Rule 12 separation
• Trust under builders' lien act
• Appropriation of payments

Read case analysis