The plaintiff, a construction company, brought a lien action against the defendant homeowners for unpaid work on a fixed-price custom home contract.
The defendants terminated the contract, alleging fundamental breaches by the plaintiff, including deviations from plans, unilateral changes, and project delays, and sought a declaration of repudiation and damages.
The court found no fundamental breach by the plaintiff, attributing delays and necessary changes to deficiencies in the defendants' own plans and designs.
The court concluded that the defendants wrongfully terminated the contract to avoid payment of the first milestone draw and to renegotiate the fixed price.
Judgment was granted in favour of the plaintiff for the lien amount and damages for breach of contract, and the defendants' counterclaim was dismissed.