Solaris Custom Home Inc. v. Trovao
Solaris Custom Homes Inc.
Law Firm / Organization
Rush Ihas Hardwick LLP
Lawyer(s)

Melia Moorhouse

Tony Dias Trovao
Jodi Nicolle Trovao

Background:
Solaris Custom Homes Inc. entered into an oral "cost-plus" contract with Tony Dias Trovao and Jodi Nicolle Trovao for the construction of a custom home in Naramata, British Columbia. Disputes arose over the project’s costs and whether there was an agreed-upon budget cap.

Legal Issues:
The primary issues included whether a $250-$300 per square foot budget was an enforceable term of the contract and if Solaris misrepresented its commitment to the budget. Additionally, the court evaluated the enforceability of a builder's lien filed by Solaris and claims of negligent misrepresentation by the defendants.

Court Findings:
The court concluded that no binding agreement on a maximum budget existed, finding no "meeting of the minds" on a specific price cap. Solaris was held to have operated under the cost-plus model, entitling them to payment for incurred costs plus a 12% management fee. The defendants' claims of negligent misrepresentation were rejected, as Solaris had not made any binding representations regarding budget limits.

Costs and Award:
The court awarded Solaris Custom Homes Inc. a judgment of $304,870.56, corresponding to the unpaid invoices. The court also recognized a lien of the same amount against the property under the Builders Lien Act and ordered the potential sale of the property if the amount remained unpaid within 90 days.

Supreme Court of British Columbia
S46055
Construction law
$ 304,871
Plaintiff