Philip Hugh Horgan

The plaintiff contractor sued the defendant homeowners for unpaid progress payments and extras on a home renovation project.

The defendants counterclaimed for the cost of completing the work, correcting deficiencies, and delay damages, alleging the plaintiff abandoned the job.

The court found that the defendants breached the contract by refusing to pay a progress invoice and failing to negotiate reasonably.

The court awarded the plaintiff $19,978, calculated by taking the balance owed on the contract and extras, less credits to the defendants for incomplete and deficient work.

The appellants, the Ontario Human Rights Commission and the complainant, appealed a Divisional Court costs order that awarded $25,000 against them despite their substantial success on the appeal.

The Court of Appeal allowed the appeal, finding the Divisional Court erred in principle by awarding costs against a successful party and by denying costs to the complainant because he was represented by pro bono counsel.

The Court varied the order to award partial indemnity costs to the appellants for both the Divisional Court proceedings and the appeal.