Part 1 published on 01/02/03
Landmark decision respecting liability of municipalities for construction defects; and reporting limitation period
In one of Canada’s landmark decisions respecting the liability of municipalities related to construction defects, Delta was found liable to condominium owners for damages resulting from wood rot. Delta was found liable on the basis that it breached its duties respecting inspection and supervision of the construction. Delta appealed.
On appeal, Delta argued that the claims had been commenced against it after expiry of the applicable limitation period. Delta also argued that the condominium owners should have been found to be contributorily negligent (for poor maintenance).
Delta’s appeal was dismissed. The British Columbia Court of Appeal agreed with the trial judge that the limitation period did not commence until the magnitude of the damages had become clear. The Court of Appeal also concluded that there was no contributory negligence on the part of the Strata Corporation.