The appellant appealed a summary judgment decision granting the respondent payment under a labour and materials payment bond.
The respondent had performed work under a subcontract with the general contractor, which subsequently abandoned the project.
The respondent then successfully bid to complete the remaining work under a new completion subcontract at more favourable terms.
The respondent claimed against the payment bond for unpaid invoices from the original work.
The appellant argued the respondent had fully mitigated its damages through the completion subcontract and therefore suffered no loss.
The Court of Appeal upheld the summary judgment, finding that the respondent's decision to bid on the completion subcontract was not an action taken to mitigate the loss from the failure to pay for the original work, but rather was a consequence of the contractor's abandonment of the project.
