Background:

• Galaxy Communities Inc. (Galaxy) sold a property in Highland Creek, Scarborough, to Prabhaharan Chelliah and Sobitha Arunakirinathan (the Owners) and contracted to build their house. A dispute arose over the construction quality, leading to legal action.

Legal Issues:

1. Whether the construction work by Galaxy was deficient or incomplete.
2. If so, whether Galaxy breached the construction contract.
3. The quantum of damages owed to the Owners due to any breach.

Court’s Analysis and Decision:

• The court found that Galaxy breached the contract by failing to complete the work in accordance with the agreed specifications and by performing deficiently.
• Despite Galaxy’s non-appearance at trial, the Owners presented unchallenged evidence of deficiencies and incomplete work.
• The court relied on expert testimony and other evidence to assess the deficiencies and calculate damages.
• Galaxy’s failure to comply with court orders and its withdrawal of a lien on the trial's commencement day were noted.

Outcome:

• Galaxy was found liable for delayed and deficient performance, with damages awarded to Mr. Chelliah amounting to $288,577.10, inclusive of HST and pre-judgment interest.
• Costs were awarded to the Owners in the amount of $45,282.27, including HST and disbursements.