The appellants appealed a trial decision finding they breached a home renovation contract with the respondent contractor.
The dispute arose when the appellants refused to pay a full $20,000 progress invoice, citing concerns over incomplete work and the statutory 10% holdback requirement under the Construction Lien Act.
The contractor subsequently stopped work, registered a lien, and terminated the contract.
The Divisional Court allowed the appeal, finding the trial judge made palpable and overriding errors in concluding the appellants had run out of money and acted unreasonably.
The Court held that the contractor breached the contract by terminating it precipitously, and ordered a new trial on damages.
