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Fundamental Breach: Deficiencies in Home Renovation Work

Turano’s Home Improvement Inc. v. Stern 2018 Ont SCJ (MC)

Contractor and owner had a dispute over services. Ultimately, the Master held that the contractor’s lien claim was invalid because the lien was registered in the corporate contractor’s name whereas the contract seems to have been in the name of the individual contractor. The Master then held that there were so many deficiencies, including serious deficiencies relating to health and safety, that the contractor was held to have repudiated the contract by way of fundamental breach. Accordingly, the Master did not allow the contractor to claim for the unpaid invoices because, at the time of the repudiation, the contractor had not achieved substantial performance of the project. The Master allowed the owner her costs of completing the work that exceeded the cost that she would have had to pay the contractor had he completed the work.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.