The plaintiff hired the defendant general contractor for a home renovation on a cost-plus basis.
After becoming concerned about costs, the plaintiff hired a cost consultant who discovered a fraudulent invoicing scheme, including inflated sub-trade accounts and double-counted HST.
The plaintiff brought a motion for summary judgment for civil fraud and to pierce the corporate veil to hold the sole shareholder personally liable.
The court granted summary judgment, finding the contractor committed civil fraud and the shareholder used the corporation as an instrument of fraud.
The defendants' counterclaim for unpaid invoices was largely dismissed due to lack of supporting documentation.
