Diotte v. Consolidated Development Co., (2014) 425 N.B.R.(2d) 271 (CA)

• Judge: Robertson, Bell and Green, JJ.A.
• Court: Court of Appeal (New Brunswick)
• Case Date: June 10, 2014
• Jurisdiction: New Brunswick
• Citations: (2014), 425 N.B.R.(2d) 271 (CA);2014 NBCA 55

Diotte v. Consolidated Dev. Co. (2014), 425 N.B.R.(2d) 271 (CA);

    425 R.N.-B.(2e) 271; 1107 A.P.R. 271

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[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

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Temp. Cite: [2014] N.B.R.(2d) TBEd. SE.011

Renvoi temp.: [2014] N.B.R.(2d) TBEd. SE.011

Consolidated Development Co. Ltd. (defendant/appellant) v. Evariste M. Diotte and E.M. Diotte Construction Inc. (plaintiffs/respondents)

Consolidated Development Co. Ltd. (plaintiff/appellant) v. Evariste M. Diotte and E.M. Diotte Construction Inc. (defendants/respondents)

(140-13-CA; 2014 NBCA 55)

Indexed As: Diotte v. Consolidated Development Co.

Répertorié: Diotte v. Consolidated Development Co.

New Brunswick Court of Appeal

Robertson, Bell and Green, JJ.A.

August 28, 2014.

Summary:

Résumé:

The appellant owner hired the respondent builder to build a garage. The builder failed to construct the garage that met the square footage requirement of the underlying contract, which specified 150 square metres. The deficiency equaled 6.5 sq. meters. The builder admitted that four of the 6.5 square meter loss was attributable to the foundation protruding into the floor space. The owner sought damages of $53,932.51, the amount required to pay for the remedial work needed to achieve compliance with the contract specifications.

The New Brunswick Court of Queen's Bench, Trial Division, in a decision reported at [2013] N.B.R.(2d) Uned. 126, allowed the action in part, awarding nominal damages of $2,000. The owner appealed.

The New Brunswick Court of Appeal dismissed the appeal.

Building Contracts - Topic 3581

Liability of builder - Damages - Measure of - Loss or diminution in value of owner's property - The appellant owner hired the respondent builder to build a garage - The builder failed to construct the garage that met the square footage requirement of the underlying contract, which specified 150 square metres - The deficiency equaled 6.5 sq. meters - The builder admitted that four of the 6.5 square meter loss was attributable to the foundation protruding into the floor space - The owner sought damages of $53,932.51, the amount required to pay for the remedial work needed to achieve compliance with the contract specifications - The trial judge allowed the action in part, awarding nominal damages of $2,000 - The owner appealed - The New Brunswick Court of Appeal dismissed the appeal - For breach of contract, the assessment of damages began with measuring the actual loss suffered from the unfulfilled bargain - The damage award was to put the claimant in as good a situation as if the contract had been performed - The loss was almost always measured in one of two ways: either the difference in value of the work done or the cost of reinstatement - Reasonableness informed the assessment - The law of damages allowed some flexibility in constructing an appropriate award - Here, there was no basis to intervene with the trial judge's award of nominal damages - It had been shown that the cost of reinstatement was the appropriate measure, that is, reasonable - Further, no evidence was led to establish the fair market value of the property was less than it would have been had there been no breach - The court did not know whether the breach of contract diminished the value of the garage - As there was no evidence the contract deviation resulted in a cost-saving to the builder, the court was left with the trial judge's nominal award - That award was justified in terms of either lost expectation or a presumed diminishment in the property's value.

Contracts - Topic 4024

Remedies for breach - Damages - Costs of restoration v. diminution in value - [See Building Contracts - Topic 3581 ].

Damage Awards - Topic 1371

Contracts - Building contracts - Diminution in value - [See Building Contracts - Topic 3581 ].

Construction - Cote 3581

Responsabilité du constructeur - Dommages-intérêts, base d'évaluation - Perte ou diminution de la valeur du bien du propriétaire - [Voir Building Contracts - Topic 3581 ].

Contrats - Cote 4024

Recours pour rupture - Dommages-intérêts - Coûts de la restauration v. diminution de la valeur - [Voir Contracts - Topic 4024 ].

Évaluation des dommages-intérêts - Cote 1371

Contrats - Construction - Diminution de la valeur - [Voir Damage Awards - Topic 1371 ].

Cases Noticed:

Jacob & Youngs Inc. v. Kent (1921), 129 N.E. 889 (N.Y. Ct. App.), consd. [para. 3].

Ruxley Electronics and Construction Ltd. v. Forsyth, [1995] UKHL 8; 185 N.R. 241, consd. [para. 3].

SNC-SNAM, G.P. v. Opron Maritimes Construction Ltd. et al. (2011), 386 N.B.R.(2d) 1; 999 A.P.R. 1; 2011 NBCA 60, refd to. [para. 7].

Tito v. Waddell (No. 2), [1977] 1 Ch. 106, refd to. [para. 24].

Bellgrove v. Eldridge, [1954] H.C.A. 36, refd to. [para. 29].

Addis v. Gramophone Co., [1909] UKHL 1, refd to. [para. 31].

Jarvis v. Swan Tours Ltd., [1973] 1 Q.B. 233 (C.A.), refd to. [para. 31].

Jackson v. Horizon Holidays Ltd., [1975] 1 W.L.R. 1468 (C.A.), refd to. [para. 31].

Vogel (Al) Construction Ltd. v. Forbes (1998), 174 Sask.R. 236 (Q.B.), affd. (2000), 189 Sask.R. 269; 216 W.A.C. 269; 2000 SKCA 10, refd to. [para. 35].

Pioneer Co-operative Association Ltd. v. Horseshoe Lodge Inc. (2000), 193 Sask.R. 268; 2000 SKQB 228, refd to. [para. 36].

Hustins (A.J.) Enterprises Ltd. v. Byrne Architects Inc. et al., [2000] N.S.J. No. 470 (S.C.), affd. [2002] N.S.R.(2d) Uned. 96; 2003 NSCA 21, refd to. [para. 36].

PSR Construction v. Dagenais, [2014] O.J. No. 2741 (Sup. Ct.), refd to. [para. 36].

Keenan v. Brown (2009), 351 N.B.R.(2d) 122; 904 A.P.R. 122; 2009 NBCA 81, leave to appeal refused (2010), 406 N.R. 400; 368 N.B.R.(2d) 402; 949 A.P.R. 402 (S.C.C.), refd to. [para. 46].

Doucet et al. v. Spielo Manufacturing Inc. et al. (2011), 372 N.B.R.(2d) 1; 961 A.P.R. 1; 2011 NBCA 44, refd to. [para. 46].

Potter v. Legal Aid Services Commission (N.B.) (2013), 402 N.B.R.(2d) 41; 1044 A.P.R. 41; 2013 NBCA 27, refd to. [para. 46].

Authors and Works Noticed:

Cunningham, Lawrence A., Cardozo and Posner: A Study in Contracts (1995), 36 Wm. & Mary L. Rev. 1379, generally [para. 12]; p. 1440, fn. 337 [para. 17].

Fridman, Gerald Henry Louis, The Law of Contract in Canada (5th Ed. 2006), generally [para. 12].

McCamus, John D., The Law of Contracts (2nd Ed. 2012), p. 900 [para. 12].

Posner, Richard A., Cardozo: A Study in Reputation (1990), generally [para. 12]; pp. 105, 106 [para. 17].

Swan, Angela, Canadian Contract Law (2nd Ed. 2009), pp. 371 [para. 37]; 372 [para. 11]; 373 [para. 42]; 478 [para. 11]; 573 [para. 12].

Waddams, Stephen M., The Law of Contracts (6th Ed. 2010), p. 764 [para. 12].

Counsel:

Avocats:

Basile Chiasson, Q.C., for the appellant;

Jeffrey Delaney, for the respondents.

This appeal was heard on June 10, 2014, by Robertson, Bell and Green, JJ.A., of the New Brunswick Court of Appeal. The following judgment of the Court of Appeal was delivered by Robertson, J.A., in both official languages, on August 28, 2014.