The plaintiff purchased a house with defective foundations from the original builders, who had ignored a municipal stop work order.
The City of Kamloops had inspected the property, discovered the defects, and issued the order, but failed to take further steps to enforce it or prevent occupancy.
The plaintiff sued the vendors and the City for the cost of repairs.
The Supreme Court of Canada held that the City owed a private law duty of care to the subsequent purchaser to enforce its building by-law.
The City's inaction was not a bona fide policy decision but an operational failure.
The Court also held that pure economic loss was recoverable in these circumstances and that the limitation period did not begin to run until the damage was reasonably discoverable.
