Otomic Contractors Ltd. (Otomic), an excavating contractor, sued Royal 7 Developments Ltd. (Royal 7), a property owner and developer, for $217,945.74 in unpaid excavation work on a multi-phased condominium project and sought a construction lien.
Royal 7 counterclaimed for $273,700.31, alleging Otomic failed to complete work and overcharged for volumes, forcing Royal 7 to hire a related company, Toocor Ltd., to finish.
The court found that Otomic's truck count method for billing was reasonable and accepted, and that Royal 7's payments had become slow and holdbacks unpaid, leading to the breakdown.
The court dismissed Royal 7's counterclaim, finding no overcharge and that Otomic was not responsible for Toocor's costs due to the non-arm's length relationship and Royal 7's failure to formally terminate or request Otomic's return.
The court granted Otomic's claim for $217,945.74 and declared its construction lien valid.
