The Receiver of a joint venture condominium project brought a motion within the receivership proceeding seeking judgment against the developer and its principal for over $1.5 million.
The claims arose from alleged inflated labour charges under a Construction Management Agreement and unearned fees under a Development Management Agreement.
The court held that the claims were properly brought within the receivership proceeding.
However, the claim for inflated labour charges was dismissed as statute-barred, having been discovered more than two years before the motion was commenced.
The court declined to grant immediate judgment on the unearned fees claim, directing that the developer's defence of set-off be determined following documentary and oral discovery.
