CONTRACTS - Building contracts - Breach - By contractor

Law360 Canada ( March 3, 2025, 9:10 AM EST) -- Appeal by appellant from trial judgement in favour of respondent for amount owing under July 2017 Release. The appellants argued that the trial judge erred by improperly drawing an adverse inference against them to find they were liable in the amount of $100,000 on account of breach of their payment obligations. The respondent purchased a residential property and contracted with the appellant and his company, Pacific Gate Development Group Ltd. ("Pacific Gate"), to construct a residence. Disputes arose between the parties about alterations to the original construction plan. The appellant had the respondent sign a release each time there was an alteration to the original construction plan. The parties decided to terminate their joint project. The respondent signed a fourth release, drafted by the appellant, releasing the appellants of all liabilities in exchange for $250,000 ("July 2017 Release"). Immediately following the signing of the July 2017 Release, the respondent received $250,000 from Pacific Gate. The respondent suggested he had not effectively received any money pursuant to the July 2017 Release. The respondent commenced legal proceedings against the appellants. The appellants sought to rely on the July 2017 Release, which effectively barred the respondent's various claims. The trial judge found the appellants were jointly and severally liable for breach of contract to the respondent under the July 2017 Release in the amount of $100,000....
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