4 Jul 2023
LH North Ltd. v Albert Building Industries Inc
In the case of LH North Ltd. v. Albert Building Industries Inc. dated July 4, 2023, the plaintiff, LH North Ltd. ("LH"), a contracting company specializing in bridge building, sought damages from the defendant, Albert Building Industries Inc. O/A Betontec Precast Products ("Betontec"), a fabricator of pre-cast concrete products. LH had been awarded a bridge rehabilitation contract by the Ontario Ministry of Transport (MTO) and had subcontracted precast concrete fabrication work to Betontec.
However, problems arose when Betontec could not provide the precast components due to lacking Canadian Standards Association (CSA) approval for its plant. Despite representations by Betontec, it could not remedy the issue, leading to LH terminating the contract on July 17, 2020. This breach and negligent misrepresentation by Betontec resulted in damages for LH.
To mitigate losses and complete the contract, LH approached Miller Precast Ltd., the second-lowest bidder, and incurred additional costs. The delay caused by Betontec resulted in LH being assessed a delay penalty by MTO, causing further financial burden.
After reviewing expert evidence, the court found Betontec solely responsible for the delay and breach. LH was entitled to an award of $977,433.55 in damages, including costs, advanced payments, standby costs, remobilization/demobilization expenses, and costs for the third-party contractor.
Betontec was ordered to pay these damages, plus prejudgment interest, for causing a delay of 65 days on the critical path and incurring additional winter-related expenses. The court concluded that LH had properly quantified its damages with clear evidence.