Summary: Ekum-Sekum Incorporated, doing business as Brantco Construction (Appellant), appealed a decision regarding equitable set-off made by the Superior Court in favor of Lanca Contracting Limited and individual defendants, Keith Oliver Lancaster, Linda Margaret Lancaster, and Nathan Keith Lancaster (Respondents).

Background: The dispute involved two construction contracts. The trial judge found that equitable set-off was appropriate, rejecting the appellant's argument that the respondents did not come to court with "clean hands." The judge acknowledged that breaches had occurred on both sides, but ruled that these breaches did not equate to unclean hands. Furthermore, the judge found that the respondents had adequately accounted for the funds in question, countering the appellant's breach of trust claim under the Construction Lien Act.

Court Analysis:

• The Court of Appeal upheld the trial judge’s discretion in allowing equitable set-off. It found no significant errors in fact or law that would justify overturning the decision. The appellate court emphasized the trial judge's discretion and the thorough examination of the contractual breaches and the handling of funds by both parties.

Outcome:

• The appeal was dismissed. The Court of Appeal awarded costs of $15,000 to the respondents, covering both this appeal and the preceding Divisional Court proceeding.