Executive Summary: Key Legal and Evidentiary Issues

• WBL was found liable to the Murrays for breach of contract and ordered to pay $914,946.59, plus pre-judgment interest and costs.

• Claims against AEL, KAPO, Luxus, and Mr. Bade were dismissed, including claims in negligence and for breach of duty to warn.

• The Murrays beat their Calderbank offer and were entitled to double costs against WBL from May 29, 2023.

• The Notice to Admit Facts served by WBL was struck as an abuse of process, since AEL had ceased to exist and parties were prejudiced by its late submission.

• The Murrays were awarded 35% of their reasonable and proper legal fees, plus 100% of disbursements and applicable taxes, to be assessed.

• Luxus and Mr. Bade, having been entirely successful, were awarded costs under Column 4 of Schedule C, subject to assessment of specific items claimed.

Facts of the case

Between 2011 and 2014, Donald and Linda Murray engaged Windsor Brunello Ltd (WBL) to manage the construction of their residence near Calgary, a large two-storey home of over 8,800 square feet above ground, with a finished basement and four-car garage. Alberta Engineering Ltd (AEL) provided structural design. KAPO Fenster und Türen GMBH, via importer Luxus Haus Imports Ltd and agent Sebastian Bade (CS Eurohaus), supplied custom windows and doors, including large sliding door assemblies.

After construction, the Murrays discovered binding issues with the Great Room and Master Bedroom Sliding Doors. They claimed damages of $1,650,293.46 against WBL, AEL, KAPO, Luxus, and Mr. Bade.

AEL admitted partial liability and settled with the Murrays for $125,000 in January 2022.

Trial outcome (2024 ABKB 281)

The Court found:

• WBL breached its contract with the Murrays and was liable for $914,946.59.

• Claims in negligence, breach of statutory duties, and duty to warn against all other defendants were dismissed.

• The Court ruled that although AEL breached its contract, the Murrays could not recover due to their pleadings being limited to negligence.

Notice to Admit decision (2023 ABKB 375)

Two days before trial, WBL served a Notice to Admit Facts on AEL. A reply was submitted by AEL’s counsel at 11:00 p.m. the night before trial. The Court struck the Notice and Reply, finding it was prejudicial and unfair, particularly as AEL had ceased to exist as a corporate entity in July 2022.

Costs decision (2025 ABKB 299)

• The Court held that the Murrays beat their May 29, 2023 Calderbank offer of $830,000 plus costs. Their judgment against WBL was $914,946.59, plus interest of $43,675.74.

• As a result, the Murrays were entitled to:

  • 35% of their reasonable and proper legal fees;

  • 100% of their disbursements (including for expert witnesses who testified);

  • applicable taxes.

• Luxus and Mr. Bade, having succeeded entirely, were each awarded costs under Column 4 of Schedule C. Luxus’ claims for specific items were disputed and referred for assessment.

• The Court denied the Murrays’ request for a Sanderson order (requiring WBL to pay the costs of the successful defendants).