The appellant condominium corporation, a subsequent purchaser of a building, discovered severe structural defects in the exterior cladding after a large section fell off.
The appellant repaired the building at its own expense and sued the original general contractor in tort for negligence to recover the pure economic loss.
The Supreme Court of Canada held that a contractor owes a duty of care in tort to subsequent purchasers of a building to take reasonable care in construction and to ensure the building does not contain defects that pose a foreseeable and substantial danger to health and safety.
The Court allowed the appeal, ruling that the reasonable cost of repairing dangerous defects is recoverable in tort, and ordered the matter to proceed to trial.
