The appellant, a roofing contractor, appealed a trial judgment ordering it to pay over $900,000 to the respondent condominium corporation in a third-party action.
The main action involved a unit owner who successfully sued the condominium corporation for continuous roof leaks.
The Court of Appeal found that while the contractor was liable for breach of contract, it was not liable for negligent misstatement because the condominium corporation had unreasonably ignored expert reports in favour of the contractor's cheaper solution.
The Court of Appeal reassessed damages, finding the condominium corporation primarily responsible for the delay in fixing the roof, and reduced the damages awarded against the contractor to $50,913.97.