Brown v HCC Group of Companies
Mervin Brown
Law Firm / Organization
Scharfstein LLP
HCC Group of Companies Ltd.
Law Firm / Organization
MacDermid Lamarsh
Hamilton Construction Corp.
Law Firm / Organization
MacDermid Lamarsh
HCC Mining Demolition Ltd.
Law Firm / Organization
MacDermid Lamarsh

Background:
Brown claimed he provided mechanical, transportation, and storage services to “HCC” entities under an oral agreement with company officers, including Kenneth Hamilton. He alleged unpaid compensation totaling $324,000. Hamilton Construction Corp. sued Brown for $680,000, alleging equipment damage and unlawful detention. Brown counterclaimed for unpaid services and storage costs, asserting a lien over the equipment. Corporate records showed overlapping directors among the entities, creating uncertainty over which entity was liable.

Key Legal Issues:

  1. Breach of Contract and Misrepresentation: Brown alleged breach of an oral agreement, fraudulent/negligent misrepresentation, and unjust enrichment against HCC Group.

  2. Counterclaims and Tort Allegations: Hamilton Construction Corp. alleged property damage and trespass, while Brown counterclaimed for unpaid work and lien enforcement.

  3. Corporate Misidentification: Brown sought to add Hamilton Construction Corp. and HCC Mining as defendants due to uncertainty over liability.

Court Decisions:

  • Amendment of Claim: Brown’s amendment to add related corporations was allowed.

  • Consolidation of Actions: Brown’s claim and Hamilton Construction’s trespass action were consolidated to avoid inconsistent rulings.

  • Application to Strike: The court dismissed HCC Group’s motion to strike Brown’s claim.

Costs Awarded:
Brown was awarded costs jointly and severally against HCC Group and Hamilton Construction for the amendment and consolidation applications, and against HCC Group for its failed motion to strike. Costs were calculated under Schedule I “B,” Column 2 of the Tariff of Costs, payable forthwith. Specific dollar amounts were not provided.

Court of King's Bench for Saskatchewan
QBG-SA-01227-2021
Corporate & commercial law
Plaintiff