Karen Dawson

Following a construction lien trial in which the plaintiff contractor’s lien claim was dismissed and the defendants succeeded on a counterclaim for overpayment, the court addressed the issue of costs under the Construction Lien Act.

The owners sought partial indemnity costs exceeding $83,000, including a significant expert witness disbursement.

The court applied the discretionary factors under Rule 57.01 of the Rules of Civil Procedure and considered complexity, success at trial, and the parties’ conduct.

The contractor argued there had been divided success and challenged the necessity of certain legal work and disbursements, but the court rejected these submissions.

Concluding that the owners were the successful parties and that their claimed costs were reasonable within the expectations of the litigation, the court awarded partial indemnity costs with a reduction to one expert report.

A contractor brought a construction lien action seeking payment for renovation work performed on a residential property.

The homeowners disputed the claim and counterclaimed alleging overpayment, asserting the work was subject to a guaranteed maximum budget.

The court found no enforceable contract existed because the parties never agreed on the essential term of price.

The contractor was nevertheless entitled to compensation on a quantum meruit basis for the reasonable value of services and materials supplied.

Accepting expert quantity‑surveying evidence, the court determined the fair value of the work was less than the amount already paid, resulting in dismissal of the contractor’s claim and a small award to the homeowners on their counterclaim.