Ketza Construction Corp. v. Mickey, 2000 YKCA 1

• Judge: McEachern, C.J.B.C., Southin and Donald, JJ.A.
• Court: Court of Appeal (Yukon Territory)
• Case Date: February 11, 2000
• Jurisdiction: Yukon
• Citations: 2000 YKCA 1;(2000), 139 B.C.A.C. 161 (YukCA)

Ketza Constr. Corp. v. Mickey (2000), 139 B.C.A.C. 161 (YukCA);

    227 W.A.C. 161

MLB headnote and full text

Temp. Cite: [2000] B.C.A.C. TBEd. SE.013

Ketza Construction Corp. (plaintiff/respondent) v. Joyce Margaret Mickey and Glenn Mickey (defendants/appellants)

(YU00411; 2000 YKCA 1)

Indexed As: Ketza Construction Corp. v. Mickey

Yukon Court of Appeal

McEachern, C.J.B.C., Southin and Donald, JJ.A.

March 6, 2000.

Summary:

The plaintiff agreed to construct a "luxury" house for the defendants. Differences arose as to the cost of the work and payment for it. The plaintiff left the site at the defen­dants' request. The defendants completed construction with other trades at substantial additional cost. The plaintiff sued the defen­dants for compensation based on quantum meruit. The defendants counterclaimed for damages for negligent misrepresentation.

The Yukon Supreme Court allowed the plaintiff's claim based on quantum meruit and fixed the amount of the judgment. The court dismissed the counterclaim. The de­fendants appealed.

The Yukon Court of Appeal allowed the appeal by reducing the amount of the judg­ment.

Building Contracts - Topic 3544

Liability of builder - Duty to owner - Duty to provide skill and judgment - The Yukon Court of Appeal, per Southin, J.A., opined that where there was no oral fixed price con­tract and no written contract, a builder who failed to keep an owner apprised timeously on all aspects of the costs being incurred might be in breach of the implied obliga­tion to use reasonable care and skill - See paragraph 26.

Building Contracts - Topic 4002

Quantum meruit claims - Circumstances where doctrine applied - The plaintiff agreed to construct a "luxury" house for the defendants without a written contract - There was no oral fixed price contract - Differences arose as to the cost of the work and payment for it - The plaintiff left the site at the defendants' request - The defendants completed construction with other trades at substantial additional cost - The Yukon Court of Appeal affirmed that the plaintiff was entitled to compensation for its services on quantum meruit - See paragraphs 3 to 13.

Building Contracts - Topic 4121

Quantum meruit claims - Elements of claim - General - The Yukon Court of Appeal stated that a claim on a quantum meruit may arise where there was (1) an express agreement to pay a reasonable sum, (2) a contract but no price was fixed and (3) a quasi-con­tract which might occur if work was carried on while negotiations were under­way but the nego­tiations failed to result in a contract - See paragraph 12.

Building Contracts - Topic 4168

Quantum meruit claims - Measure of com­pensation - Determination of - Bene­fit to owner - The plaintiff agreed to construct a "luxury" house for the defend­ants with­out a written contract - There was no oral fixed price contract - Differ­ences arose as to the cost of the work and payment for it - The plaintiff left the site at the defendants' request - The defendants com­pleted construction with other trades at substantial additional cost - The Yukon Court of Appeal held that in calculating the worth of the job, the trial judge erred in adding 12 percent for overhead and fee to the costs incurred by the plaintiff in constructing the house - See paragraphs 14 to 21.

Cases Noticed:

Powell v. Streatham Manor Nursing Home, [1935] A.C. 243 (H.L.), refd to. [para. 10].

Authors and Works Noticed:

Keating on Building Contracts (6th Ed. 1995), p. 84 [para. 12].

Counsel:

B. O'Ferrall and J.R. Laluk, for the appel­lants;

F.R. Eadie, for the respondent.

This appeal was heard before McEachern, C.J.B.C., Southin and Donald, JJ.A., of the Yukon Court of Appeal, at Vancouver, British Columbia, on February 11, 2000. The decision of the court was delivered on March 6, 2000, by Southin, J.A.