Elembe (LMB) Mechanical Ltd. v. Two Hundred Inc.
ELEMBE (LMB) MECHANICAL LTD.
TWO HUNDRED INC.
Law Firm / Organization
Niroomand Law
Lawyer(s)

Hossein Niroomand

Background

  • Project: Condominium construction at 200 Woodbine Ave., Toronto.
  • Parties:
    • LMB: Trade contractor for plumbing, gas, and HVAC work.
    • 200: Property owner and developer.
  • Dispute:
    • LMB claimed unpaid amounts, including extras due to design changes.
    • 200 argued LMB was overpaid and asserted set-offs for incomplete/deficient work.
    • LMB registered a lien for $260,134.31, later reduced to $244,611.49.

Court Findings

  1. Base Contract Work:

    • LMB’s work was substantially complete except for fixtures in two penthouse units.
    • Court adjusted the claim, valuing LMB’s completed contract work at $1,530,450.
  2. Extras & Changes:

    • LMB claimed 232 change invoices; 165 were paid, 67 were not.
    • Court ruled 200 waived strict contract compliance by paying most change invoices.
    • The 165 paid extras were valid, but LMB failed to prove entitlement to the unpaid 67.
  3. Lien Timeliness & Abandonment:

    • LMB abandoned the contract before registering its lien, exceeding the 45-day limit.
    • Lien declared expired, and lien bond returned to 200.
  4. Breach of Contract:

    • LMB breached by wrongfully suspending work, but still earned compensation.
  5. Deficiencies & Set-Offs:

    • 200 failed to prove deficiencies or damages, and its counterclaim was dismissed.

Final Judgment

  • LMB awarded $172,740.47 for unpaid work.
  • Lien expired; 200 entitled to lien bond return.
  • 200’s counterclaim dismissed.
Superior Court of Justice - Ontario
CV-19-632176
Real estate
$ 172,740
Plaintiff