Appeals Court decision
The Nova Scotia Court of Appeals has handed down a decision in a dispute over work conducted on the Shannex assisted living facility in Kentville.
Shannex, which operates assisted living establishments, built a facility on West Main and River streets in Kentville in 2009. The general contractor, Dora Construction, warranted its work. Shortly after the facility opened, some pipes froze and remediation was needed.
Representatives of Shannex, Dora and remediation contractor Myron Upham met to discuss what to do. Upham sent two invoices to Shannex after working for a month, one for $49,367.50 for the remediation or “four corners” work and one for $303,282.70 for “additional” work.
Shannex replied that Dora was responsible under the warranty. Dora disagreed and said Upham’s price was inflated. Dora said it hadn’t retained Upham to do the additional work. Upham wasn’t paid.
“Dora is not responsible and will not pay the invoices you sent to our office,” Dora stated in a March 22, 2010, email to Upham.
Upham threatened to lien Shannex’s building. Counsel for Shannex and Upham negotiated a settlement that included Shannex’s payment to Upham for one of the invoices, for $49,000, and a Release and Indemnity signed by Upham.
This said Upham released Shannex from “all…claims…by