Executive Summary: Key Legal and Evidentiary Issues

• Dispute over completion and quality of subcontracted installation work for a school’s intercommunication system.

• Determination of whether the subcontractor fulfilled contractual obligations and the percentage of work completed.

• Assessment of entitlement to payment for partially completed work and calculation of damages for incomplete performance.

• Evaluation of the contractor’s right to recover costs incurred from hiring a third party to complete the project.

• Consideration of claims for moral damages and the sufficiency of supporting evidence.

• Application of compensation (set-off) between the parties’ respective monetary claims.

Facts and outcome of the case

Background and parties

The case involves 9382-2716 Québec Inc. (Québec Inc.), a subcontractor, and Perfection Électrique Inc. (Perfection), the main contractor. The dispute arose from a project initiated by the Centre de services scolaire de Montréal (CSSDM) for the installation of an intercommunication system and related electrical work at the École St-Jean-Vianney. Perfection was awarded the contract and subcontracted the installation of the intercommunication system to Québec Inc. for a fixed price of $58,714.

Course of events and dispute

During 2022 and into early 2023, Perfection made partial payments to Québec Inc. but withheld the balance, arguing that the work was incomplete and deficient. Québec Inc. claimed the remaining balance and additional moral damages, insisting the work was substantially complete. Perfection counterclaimed for reimbursement of costs paid to another contractor, SCI Connexion, to finish the project after Québec Inc. failed to deliver a functional system.

Key legal and evidentiary issues

The court examined whether Québec Inc. had completed the work according to contractual and technical requirements, the extent of completion, and the legitimacy of Perfection’s refusal to pay the remaining contract price. Testimony and documentary evidence from project supervisors and the replacement contractor highlighted significant deficiencies and incomplete work, including non-functional components and missing system features.

Court’s findings and analysis

The court found that Québec Inc. had not fulfilled its contractual obligations, determining that only 58% of the work was properly completed. The court accepted Perfection’s evidence of deficiencies and the necessity of hiring SCI Connexion to finish the project. While Québec Inc. was entitled to partial payment for work performed, Perfection was awarded damages for the additional costs incurred to complete the installation.

Outcome and awards

The court ordered Perfection to pay Québec Inc. $1,408.33 for the value of the completed portion of the contract. Conversely, Québec Inc. was ordered to pay Perfection $12,086.62 in damages for the extra costs required to finish the project. After compensation (set-off) of these amounts, Québec Inc. was required to pay Perfection a net sum of $10,678.29, plus legal interest and an additional indemnity from July 19, 2023. Each party was ordered to bear its own legal costs.

Conclusion

The case underscores the importance of fulfilling contractual obligations in construction projects and the legal consequences of incomplete or deficient work. The court’s decision balanced the parties’ respective claims, awarding partial payment for work performed while holding the subcontractor liable for damages resulting from its failure to deliver a functional system.