Case Overview:
- Wessuc Inc.: Sought $1,672,455.94 for breach of contract, unjust enrichment, and breach of trust.
- Todd Brothers: Denied liability and counterclaimed for Wessuc’s failure to complete the contract.
Key Issues:
- Existence and Terms of Contract:
- Wessuc claimed a per-unit price contract; Todd asserted a lump sum contract.
- The court found the contract to be a lump sum for the removal of 6100 m³ of sludge at a fixed price.
- Project Termination:
- The court needed to determine if Wessuc abandoned the project or if Todd terminated Wessuc’s contract.
- Damages and Quantum Meruit:
- Consideration of damages flowing from project abandonment or termination and the applicability of quantum meruit.
- Compliance with Labour and Material Bond:
- Evaluation of Wessuc’s compliance with bond terms provided by GCNA.
Findings:
- Contract Terms: The court found that the contract was for a lump sum, not a per-unit price, as confirmed by various emails and internal communications. Wessuc's method change increased costs contrary to its initial proposal.
- Termination: Wessuc was found to have abandoned the project by ceasing operations and demobilizing without completing the required sludge removal.
- Damages: The court did not award damages to Wessuc due to its failure to complete the project.
Decision:
The court dismissed Wessuc’s claims, allowed Todd's counterclaim ($53,000.00), and ruled that GCNA had no obligations under the labour and material bond. The decision was based on the finding that Wessuc abandoned the project and the established terms of a lump sum contract.
