Two actions arose from a construction project where Kelson subcontracted Amar for sheet metal work, and Amar sub-subcontracted Sjostrom for labour.
Sjostrom walked off the job due to non-payment by Amar.
Kelson then directly engaged Sjostrom to complete the work and issued a change order reducing Amar's contract price.
Sjostrom claimed unpaid amounts from Kelson, while Amar claimed the unpaid balance of its subcontract.
The court found that Kelson and Sjostrom formed a direct oral contract, but Sjostrom failed to prove its claimed hours and its action was dismissed.
The court also found that the change order removed the remaining labour from Amar's scope of work, and Kelson breached its subcontract with Amar by non-payment.
Amar was awarded $209,737.88.
