Background:

• Agreement: The Faulkners contracted Nature Ridge Homes Ltd. to build a house in Porter’s Lake for $599,000.
• Issue: Rising lumber costs led to disputes over increased construction costs.
• Small Claims Court: Ruled that the Faulkners overpaid due to duress, ordering repayment of certain overages.
• Appeal: Nature Ridge Homes Ltd. appealed the decision.

Key Findings and Reasoning:

1. Initial Contract:
   • Date: February 5, 2021.
   • Terms: Included provisions for cost overages but did not specify handling unforeseen inflation.
2. Cost Overages:
   • Communication: The Faulkners were notified about potential lumber cost increases in April 2021.
   • Response: Faulkners chose to proceed with the additional costs rather than cancel the contract.
3. Adjudicator’s Decision:
   • Findings: The increased costs were included in a later Schedule “E”, which the Faulkners signed under pressure due to lack of alternatives.
   • Conclusion: Found economic duress, ordered repayment of specific overages.
4. Grounds for Appeal:
   • Economic Duress: Claimed it was applied incorrectly as a cause of action rather than a defense.
   • Contract Interpretation: Asserted that the original contract did not authorize additional charges for lumber without consent.
5. Supreme Court Decision:
   • Error in Law: Found the Adjudicator misapplied evidence and legal principles.
   • No Choice: Determined the Faulkners had alternatives and had agreed to additional costs previously.
   • Contract Terms: Noted original awareness of rising costs, invalidating duress claim.

Outcome:

• Appeal Allowed: The Adjudicator’s decision was quashed.
• Order: Monies paid to the Faulkners to be returned, and the Appellant awarded costs. Excat total amount awarded was not specified.