MacEachern v. Monaghan,

JurisdictionPrince Edward Island
JudgeMacDonald
Neutral Citation2001 PESCTD 81
Citation2001 PESCTD 81,(2001), 205 Nfld. & P.E.I.R. 83 (PEITD),205 Nfld & PEIR 83,(2001), 205 Nfld & PEIR 83 (PEITD),205 Nfld. & P.E.I.R. 83
Date26 March 2001

MacEachern (2001), 205 Nfld. & P.E.I.R. 83 (PEITD);

    615 A.P.R. 83

MLB headnote and full text

Temp. Cite: [2001] Nfld. & P.E.I.R. TBEd. SE.008

James E. MacEachern (plaintiff) v. Maurice Monaghan (defendant)

(SCC-21996; 2001 PESCTD 81)

Indexed As: MacEachern v. Monaghan

Prince Edward Island Supreme Court

Trial Division

MacDonald, C.J.T.D.

August 30, 2001.

Summary:

The plaintiff sued the defendant for the amounts outstanding for the cost of excavat­ing land for the defendant to build a house. The defendant counterclaimed against the plaintiff, asserting that the plaintiff breached a contract to complete certain items for a specified price.

The Prince Edward Island Supreme Court, Trial Division, allowed the plaintiff's action and assessed damages accordingly. The court reduced the amount by $667, the amount that the defendant established that he was entitled to on his counterclaim.

Building Contracts - Topic 512

The contract - Estimates - Effect of - [See Building Contracts - Topic 2630 ].

Building Contracts - Topic 2630

Payment - Compensation to builder - Extras - Determination of amount of com­pensation - The defendant approached the plaintiff to excavate land for him to build a house - Although the plaintiff insisted that he only worked on an "hourly rate", he gave the defendant a written quote of $3,800 so the defendant could obtain fi­nancing - While the plaintiff was complet­ing the work, he ran into a number of unanticipated difficulties - Also, the defen­dant increased the scope of the work - When the work was completed, the plain­tiff submitted a bill for $6,894.86 - The defendant paid $4,500, but refused further payment - The plaintiff sued the defendant for monies owing - The defendant asserted that the plaintiff breached the contract to do the work for a specified price - The Prince Edward Island Supreme Court, Trial Divi­sion, allowed the plaintiff's action - The estimate was only for banking pur­poses - Consequently, it was only evidence of the work that the plaintiff was going to do - Moreover, the plaintiff completed many extras over and above the items listed in his estimate - The court then calculated the amount owing for the extras on a quantum meruit basis.

Building Contracts - Topic 3546

Liability of builder - Duty to owner - Duty respecting price quotation or estimate - [See Building Contracts - Topic 2630 ].

Building Contracts - Topic 4002

Quantum meruit claims - General - Cir­cumstances where doctrine applied - [See Building Contracts - Topic 2630 ].

Building Contracts - Topic 4170

Quantum meruit claims - Measure of com­pensation - Considerations - Fair and just amounts - [See Building Contracts - Topic 2630 ].

Cases Noticed:

Greenhill Properties (1977) Ltd. v. Sand­castle Recreation Centre Ltd. et al., [1998] B.C.T.C. Uned. 634 (S.C.), refd to. [para. 8.].

Serafin v. Johnston (1977), 12 Nfld. & P.E.I.R. 169; 25 A.P.R. 169 (P.E.I.C.A.), refd to. [para. 10].

Mt. Cheam Developments Ltd. v. Clark, [1988] B.C.J. No. 3114 (Sup. Ct.), refd to. [para. 12].

Hugh's Contracting Ltd. v. Reid, [1998] B.C.T.C. Uned. 61 (S.C.), refd to. [para. 16].

Re Chittick and Taylor (1952), 12 W.W.R.(N.S.) 653, refd to. [para. 22].

Fairwood Construction Ltd. v. Lin. [199] 7 B.C.T.C. Uned. 666 (S.C.), refd to. [para. 25].

Authors and Works Noticed:

Fridman, G.H.L., The Law of Contract (3rd Ed. 1994), p. 16 [para. 8].

Goldsmith, Canadian Building Contracts, p. 59 [para. 11].

Counsel:

Kathleen Loo Craig, for the plaintiff;

Alan Cheverie, for the defendant.

This action was heard at Charlottetown, P.E.I., on February 26 and March 26, 2001, before MacDonald, C.J.T.D., of the Prince Edward Island Supreme Court, Trial Divi­sion, who delivered the following judgment on August 30, 2001.

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