Legal Blog

Lost Profit & Overhead

DCM Erectors Inc. v. Guarantee Co. of North America 2018 Ont SCJ (MC)

Master was dealing with a refusals motion. The plaintiff was making a clam for lost profit and overhead and the defendant wanted production of documents and information as to how it calculated overhead and profit and the specifics that made up that calculation. The Master held that the plaintiff did not have to answer the questions because the contract on which the claim was made included an agreed percentage for overhead and the plaintiff was merely extending that amount over the additional weeks of the contract according to the formula set out in Ellis-Don Ltd. v. Toronto Parking Authority 1978 Ont HCJ. This decision has to be limited to its own very specific facts (i.e. an existing set percentage) and, even with them, taken with a large grain of salt.

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