Background:

• Project: Construction of residential buildings in Waterloo, Ontario.
• Contract: Nikom agreed to provide drywall services for Buildings A and H at fixed prices.
• Dispute: Nikom withdrew from the project on August 21, 2019, citing unpaid invoices. The Block counterclaimed for delays and poor workmanship.

Key Issues:

1. Repudiation of Contract: Determining the breaching party.
2. Entitlement to Damages: Assessing if Nikom and IPSC are owed damages.
3. Counterclaim Validity: Evaluating The Block’s claims for additional costs.

Court Findings:

1. Contractual Breach:
   • Nikom's Claim: Nikom claimed fulfillment of contract terms and non-payment by The Block.
   • The Block's Defense: The Block cited Nikom’s poor performance, insufficient workforce, and project abandonment.
2. Evidence:
   • Nikom’s Evidence: Lacked sufficient documentation to support claims.
   • The Block’s Evidence: Testimonies and documentation showed deficiencies and delays. NG Marin rectified Nikom's work at a cost of $1,298,477.73.
3. Decision:
   • Repudiation: Nikom was found to have repudiated the contract by abandoning the project.
   • Damages: Plaintiffs were not entitled to damages.
   • Counterclaim: The Block’s counterclaim was upheld, awarding $325,824.41 to The Block.

Conclusion:

• Judgment: Nikom and IPSC’s claims dismissed, The Block’s counterclaim upheld.
• Orders: Discharge of liens, return of security, plaintiffs to pay $325,824.41 plus pre-judgment interest to The Block.