Issue of set-off had not been raised during contractor’s attempts to collect payment

Ontario civil | Contracts

FORMATION

Issue of set-off had not been raised during contractor’s attempts to collect payment

Company related to contractor owed property owner money. Contractor rented certain equipment with operator to property owner. Contractor rendered invoice to owner for $34,860 but owner never paid. Owner alleged work was supposed to be performed by related company and was to be credited against amount owing by related company. Contractor brought action against owner for amount owing. Action allowed. Contractor was awarded $34,860 as claimed. Owner’s allegations were not supported by evidence. Evidence of contractor was accepted. Contractor never agreed to provide work to owner on basis that it would be set off against related company’s obligations to owner. Further, contractor never did anything to lead owner to believe contractor did not expect payment of its invoice. Issue of set-off had not been raised during contractor’s attempts to collect payment until contractor’s counsel sent demand letter.
Atlas Corp. v. Walker Aggregates Inc. (Aug. 21, 2014, Ont. S.C.J., DiTomaso J., File No. Barrie CV-12-0357OTSR) 245 A.C.W.S. (3d) 81.

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