The respondent owners hired contractors to build a retaining wall.
The contractors obtained a building permit from the appellant municipality based on a rudimentary and inadequate sketch.
The municipality issued the permit but relied on on-site inspections to ensure compliance.
The owners and contractors failed to notify the municipality when the project reached the stage requiring inspection.
The wall later cracked and collapsed, causing damage.
The Supreme Court of Canada held that the municipality owed a duty of care to the owner-builders, despite their failure to give notice, because the municipality had issued a permit based on an obviously deficient design.
Liability was apportioned 70% to the municipality and 30% to the owners.
