Direct Horizontal Drilling Inc. v. North American Construction Management Ltd.
Direct Horizontal Drilling Inc.
Law Firm / Organization
McKechnie & Company
Lawyer(s)

J. Cam McKechnie

North American Construction Management Ltd.
Law Firm / Organization
Miller Thomson LLP
Lawyer(s)

Cobi Dayan

The Guarantee Company of North America La Guarantie, Compagnie D’Assurance De L’Amerique Du Nord
Law Firm / Organization
Miller Thomson LLP
Lawyer(s)

Cobi Dayan

Background Facts:
Despite the incomplete work, Direct Horizontal invoiced North American for the full amount of $2.6 million. When North American refused to pay, citing the incomplete work and other issues, Direct Horizontal filed a lawsuit in 2011, claiming the payment as a debt owed under the contract. North American argued that the case was complex, involving an analysis of the reasons for non-completion and the terms of the contract, and raised a counterclaim.

Legal Issues:
The key issues were whether Direct Horizontal was entitled to the full payment despite not completing the work, and whether the matter was suitable for resolution via a summary trial. The court needed to consider whether the contractual terms justified the non-payment and whether additional evidence was required.

Court’s Decision:
Justice Tammen dismissed Direct Horizontal’s application for a second summary trial, agreeing with North American that the case required a full trial due to its complexity.

Costs Awarded:
The court awarded costs at Scale B in favor of North American Construction Management Ltd., to be payable at the conclusion of the litigation.

Supreme Court of British Columbia
S116804
Construction law
Defendant