Appellant
Respondent
Background: Highridge Homes Ltd. (the Builder) contracted with Vanessa Marilyn de Boer and Dirk Johannes de Boer (the Owners) to build a home at Predator Ridge Golf Course in Vernon. They fell out over excavation costs, leading the Owners to refuse the final invoice payment. The Builder sued for payment and lost profit, filing a builders lien. The lien was removed when the Owners paid the disputed amount into their lawyer’s trust account.
Legal Arguments/Issues: The Builder appealed the trial court's denial of contractual interest on the overdue amount after payment into trust. The Owners cross-appealed on three issues: the legal effect of a cost estimate sheet, mutual termination of the contract, and deductions from the final invoice.
Held: The court ruled that payment into a trust account did not constitute payment under the contract, entitling the Builder to 12% interest per annum from November 9, 2016, to June 9, 2021. It found that the cost estimate sheet did not alter the cost-plus nature of the contract and that the Builder did not need authorization for costs exceeding the estimate. The court upheld the mutual termination of the contract on August 12, 2016, and rejected the Owners' challenges to three specific charges.
Costs/Damages Awarded: The appeal was allowed, and the cross-appeal was dismissed. Highridge Homes Ltd. was awarded 12% interest per annum from October 8, 2016, to June 9, 2021. Financial terms were not specified.
Court
Court of Appeals for British ColumbiaCase Number
CA47589Practice Area
Construction lawAmount
Winner
AppellantTrial Start Date
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