The purchasers of a residential property and the vendor brought a Small Claims Court action against the vendor's real estate agent and the contractor hired by the vendor to perform renovations.
The trial judge awarded damages against both the agent and the contractor for negligent misrepresentation and defective work.
The contractor appealed.
The Divisional Court allowed the appeal, finding that the trial judge erred in law by treating the contractor as an agent and finding a special relationship where none existed.
The contractor had no contractual relationship with the purchasers, and his liability was solely to the vendor, who had suffered no damages.