A contractor sued a distributor and manufacturer after copper tubing supplied for a municipal watermain failed a mandatory sterilization test required by municipal specifications, forcing replacement with alternative piping and causing significant remediation costs.
The court held the distributor liable in contract under the Sale of Goods Act for breach of implied conditions of fitness and merchantable quality, finding the contractor relied on the distributor’s expertise and that the tubing was not fit for its intended municipal watermain use.
The manufacturer was found liable in negligence for failing to investigate regulatory requirements and municipal sterilization standards after legislative changes following the Walkerton water crisis and for failing to warn the parties despite internal knowledge that high chlorine concentrations could cause corrosion and sterilization test failure.
The court concluded the manufacturer breached its duty of care and failed to disclose critical information during the project.
Damages were awarded for remediation costs incurred in removing and replacing the copper tubing.
