Nikom v. The Block Inc.
NIKOM CONSTRUCTION INC.
Law Firm / Organization
SimpsonWigle Law LLP
Lawyer(s)

Cameron Neil

INVOICE PAYMENT SYSTEM CORPORATION
Law Firm / Organization
SimpsonWigle Law LLP
Lawyer(s)

Cameron Neil

THE BLOCK INC.
Law Firm / Organization
Fogler, Rubinoff LLP
Lawyer(s)

Carol A. Dirks

Background:

  • Project: Construction of residential buildings in Waterloo, Ontario.
  • Contract: Nikom agreed to provide drywall services for Buildings A and H at fixed prices.
  • Dispute: Nikom withdrew from the project on August 21, 2019, citing unpaid invoices. The Block counterclaimed for delays and poor workmanship.

Key Issues:

  1. Repudiation of Contract: Determining the breaching party.
  2. Entitlement to Damages: Assessing if Nikom and IPSC are owed damages.
  3. Counterclaim Validity: Evaluating The Block’s claims for additional costs.

Court Findings:

  1. Contractual Breach:
    • Nikom's Claim: Nikom claimed fulfillment of contract terms and non-payment by The Block.
    • The Block's Defense: The Block cited Nikom’s poor performance, insufficient workforce, and project abandonment.
  2. Evidence:
    • Nikom’s Evidence: Lacked sufficient documentation to support claims.
    • The Block’s Evidence: Testimonies and documentation showed deficiencies and delays. NG Marin rectified Nikom's work at a cost of $1,298,477.73.
  3. Decision:
    • Repudiation: Nikom was found to have repudiated the contract by abandoning the project.
    • Damages: Plaintiffs were not entitled to damages.
    • Counterclaim: The Block’s counterclaim was upheld, awarding $325,824.41 to The Block.

Conclusion:

  • Judgment: Nikom and IPSC’s claims dismissed, The Block’s counterclaim upheld.
  • Orders: Discharge of liens, return of security, plaintiffs to pay $325,824.41 plus pre-judgment interest to The Block.

 

Superior Court of Justice - Ontario
CV-19-00001586-0000
Civil litigation
$ 325,824
Defendant