One of the best ways you can protect yourself personally is to conduct business through a limited liability company. However, if you do not let your customers and suppliers know that they are dealing with a limited liability company, you can personally be on the hook. Depending on the type of work you do and…
What happens if you discount an invoice and are not paid? Can you retract the discount and bill for the full amount? A recent decision from the BC Supreme Court shows that you may not be able to do so. FACTS A West Vancouver man (the “Homeowner”) entered into an agreement (the “Contract”) with a…
Frequently the courts are called upon to determine if someone has suffered damages, and if so, how to calculate them. Doing so can be like trying to guess the price on the game show, The Price is Right. A recent case, however, provides some helpful guidance on what the courts will generally consider. FACTS In…
The goal in signing a contract is generally to see it through to completion. However, contracts often contemplate a method for terminating the contract in certain circumstances. Recently, the court clarified the law surrounding this issue. Facts In 2001, an owner hired a general contractor (the “Contractor”) to complete a home building project in West…
Despite the best intentions, a construction project can be delayed beyond the anticipated completion date. If the matter proceeds to litigation, the court must decide the appropriate method for determining what damages, if any, should be awarded for breach of contract. In Thai House Restaurant (North Vancouver) Ltd. v. Lui’s Millwork Ltd., 2011 BCSC 964 [Thai House], the…
Generally speaking, an owner, and anyone who is primarily liable on a contract or subcontract, must retain a holdback of 10% under the Builders Lien Act. In 2002, the BC Supreme Court surprised many legal observers when it held that a someone who was owed money on a project could not only claim a lien…
When does a quote become a binding contract is a common question. Recently the British Columbia Supreme Court provided some helpful guidance. FACTS In 2003 the construction of a house in Kelowna, BC was nearing completion when the original tile installer walked off the job. Exclusive Flor Sales Ltd. (the “Contractor”) is based in Surrey,…
The Supreme Court of Canada delivered a HUGE win for general contractors yesterday. In a much-anticipated decision, the Supreme Court of Canada held that an insurer did in fact owe a duty to defend a general contractor for claims made as a result of negligent subtrades. After years of being denied coverage for these claims, this decision…
What does “lockup” mean and when is a project at the “lockup” stage? These questions were recently the subject of a dispute before the BC Supreme Court. FACTS In Skadberg Construction Ltd. v. Buschholz, 2010 BCSC 869, Skadberg Construction (the “Builder”) and Buschholz (the “Homeowner”) entered into a construction agreement based on the precedent provided by…
Recently, there was a BC Supreme Court decision that dealt with the consequences of accepting a non-compliant bid. The judge also had some stern warnings for the parties about undermining the integrity of the tendering process when parties do not follow the rules. FACTS In Cranbrook Interior Woodwork Ltd. v. D & T Developments Ltd.,…