Continental Homes Inc. ("Continental") filed a construction lien for $35,000 and sought $130,000 in damages for breach of contract against 8682470 Canada Inc. o/a Chang Xin Construction ("Chang") and 2646576 Ontario Inc. ("264").
Chang counterclaimed for $63,516.77, alleging Continental delayed the project and performed subpar work.
Key Facts:
A May 27, 2019 meeting between the parties led to a contract offer from Continental the next day. Continental argued Chang accepted this by instructing work to begin; Chang claimed only a verbal agreement existed.
Delays occurred due to Chang’s failure to secure utility locates and surveys on time, affecting project timelines.
Ruling:
The court found a valid contract was formed, as Chang’s actions implied acceptance despite not signing.
Chang breached the contract by not paying the agreed deposit and terminating Continental without cause. Delays were attributed to Chang, not Continental.
Continental was awarded $23,279.50 for unpaid work, enforceable as a lien, but its claim for $130,000 in lost profits was dismissed due to lack of evidence.
Chang’s counterclaim was also dismissed.
Costs:
The court deferred a decision on legal costs, directing parties to submit written submissions by December 2024.
