Case Overview

• Claim: Can*Sport and Lee Adamski seek $5 million in damages from HarbourEdge for breach of contract, loss of profits, and other damages.
• Counterclaim: HarbourEdge seeks repayment of approximately $2 million loaned for constructing a hockey complex in Bedford, Nova Scotia.

Key Facts

• Can*Sport was to build a multi-pad hockey arena and school complex with funding from HarbourEdge.
• The project never commenced, no tenants occupied the premises, and Can*Sport defaulted on the loan.
• Can*Sport alleges HarbourEdge caused project delays and financial overruns by acting in bad faith.
• HarbourEdge contends delays and cost overruns were due to Can*Sport's mismanagement.

Major Issues

1. Whether HarbourEdge breached the contractual agreement.
2. The nature and extent of damages if a breach occurred.

Court Findings

• Loan Agreement: Structured in three phases ("Facilities") with specific preconditions:
  • Facility 1: $1,210,000 for land acquisition
  • Facility 2: $1,743,375 for site works and soft costs
  • Facility 3: $8,418,625 for construction costs
• Preconditions Dispute: Can*Sport did not meet preconditions for Facility 3 funding, and HarbourEdge did not waive them.
• Construction Delays: Delays and cost overruns noted, with a contractor's lien filed against the property.
• Termination of Funding: HarbourEdge halted funding in November 2016 due to unmet preconditions and lack of confidence in project completion.

Conclusion

• The Court dismissed Can*Sport and Adamski's claims, finding no breach of contract by HarbourEdge.
• Outcome: HarbourEdge's actions were in accordance with the contract's terms, and Can*Sport failed to meet critical preconditions for funding.
• No monetary award specified.