2477791 Ontario Inc. v. Top Art Roofing Ltd.

2025 ONSC 1482 | Ontario Superior Court of Justice — Divisional Court

Construction LitigationBy Calvin Zhang | Starkman & Zhang Lawyers
Read Full Decision on CanLII
A roofing contractor's customer stopped payment on the final cheque, lost at trial, and appealed — then did nothing to perfect the appeal for five months. We moved to dismiss on procedural grounds. The Divisional Court agreed: appeal dismissed, $6,000 in costs awarded to our client. The merits of the roofing dispute were never even discussed.

The Commercial Problem

Our client, Top Art Roofing Ltd., was partway through installing a roof when the property owner — a numbered Ontario corporation — stopped payment on the final cheque, alleging deficiencies in the work. Top Art stopped work in response. What should have been a straightforward contract completion turned into litigation.

The owner brought a claim for damages in Small Claims Court. Top Art counterclaimed for the unpaid invoices. The matter proceeded to trial on September 19, 2024, where the owner's adjournment request was denied for lack of supporting evidence. Trial went ahead, and the decision was rendered.

Instead of accepting the outcome, the owner appealed to the Divisional Court, claiming denial of procedural fairness. Now our client faced the prospect of months more litigation — the appeal hanging over their business, delaying final resolution, and preventing them from moving on.

The core anxiety for any contractor in this position is familiar: how long will this drag out? Every month the appeal continues is another month without closure — another month where the disputed amount remains unresolved and the legal costs keep accumulating.

Key Strategic Decisions

Decision 1: Move to Dismiss on Procedural Grounds — Skip the Merits Entirely

The conventional approach would have been to prepare a full response to the appeal on the merits — arguing about roof quality, contract terms, and the trial judge's findings of fact. That would have meant months of additional briefing, potentially an oral hearing on the substance, and an uncertain outcome.

We took a different approach. The appellant had filed a notice of appeal but had failed to order the transcripts of the trial proceedings — a fundamental step in perfecting any appeal. Without transcripts, the Divisional Court had no record of what happened at trial. Without the trial judge's reasons, there was nothing for the appellate court to review.

We moved to dismiss the appeal on three grounds: (1) failure to order transcripts, (2) the trial judge's reasons were not before the court, and (3) the appeal may have been brought in the wrong court. Why argue about whether the roof was deficient when the other side had not even done the basic procedural work to get their appeal off the ground?

Decision 2: Creating a Paper Trail with the January 2025 Factum

In January 2025, we served our responding factum, which explicitly identified the deficiencies in the appeal: no transcripts had been ordered, the trial record was incomplete, and the appeal could not proceed in its current state.

This was not just advocacy — it was strategic documentation. By putting the appellant on clear written notice two months before the hearing, we eliminated any argument that they were unaware of the problem. When the hearing arrived on March 5, 2025, and the appellant revealed they had only ordered the transcripts that very morning — five months after filing the appeal — the court had our factum as proof that this was not a surprise to anyone. The appellant had known since January that their appeal was deficient and had chosen to do nothing.

Decision 3: Seeking Costs on Partial Indemnity — Reasonable but Firm

We sought costs of $6,000 on a partial indemnity basis. This was a measured request — enough to compensate our client for the expense of responding to a deficient appeal, but not so aggressive as to appear unreasonable.

The Divisional Court awarded the full $6,000. This sends a clear signal: filing an appeal and then failing to follow through has consequences. Our client was not only vindicated on the procedural point but also recovered costs for having to deal with an appeal that should never have proceeded in the state it was in.

Result

Justice Shore denied the appellant's adjournment request and dismissed the appeal. The appellant's request for yet another adjournment — their third across the life of this dispute — was denied on the basis that they had five months to order transcripts and had failed to do so despite being warned in our January 2025 factum. Costs of $6,000 were awarded to our client, Top Art Roofing.

The matter was resolved. The appeal was dead. Our client could move on.

Comparison:

If we had engaged on the merits of the appeal, the matter could have dragged on for months longer — requiring full transcript review, detailed factual submissions, and potentially a lengthy oral hearing with an uncertain outcome. By identifying the procedural failures early and moving to dismiss, we ended the appeal at the threshold. The entire dispute — from the appellant's perspective — was over before it started.

Three Takeaways for Contractors and Businesses Facing Appeals

1. Procedural compliance wins cases. Filing a notice of appeal is only the first step. An appellant must perfect the appeal by ordering transcripts, assembling the appeal record, and filing materials within the prescribed timelines. Failure to do so is not a technicality — it is a basis for dismissal. In this case, five months of inaction was fatal.

2. An appeal is not an automatic do-over. Some litigants treat an appeal as a second chance to argue their case. It is not. Appellate courts review the trial record for legal errors — and they cannot do that if the trial record is never provided. The Divisional Court was clear: without transcripts and the trial judge's reasons, there was nothing to review.

3. Strategic litigation means knowing which battle to fight. The strongest move in this case was not arguing about roof quality or contract terms. It was recognizing that the other side had made fatal procedural errors and pressing the advantage. Sometimes the most effective litigation strategy is never reaching the merits at all.

Facing an Appeal or a Construction Dispute That Won't Resolve?

We recommend a 60-90 minute legal posture assessment to evaluate your procedural position, identify weaknesses in the opposing party's case, and determine whether accelerated resolution — including motions to dismiss — could end the dispute faster than arguing the merits.

This is not a sales meeting — it is a litigation-focused diagnostic to help you decide whether, when, and how to take legal action.

Legal Framework

This page describes a case handled by Starkman & Zhang Lawyers. To protect client confidentiality, certain non-critical details have been generalized. The core facts, strategic decisions, and outcomes are accurate. This page does not constitute legal advice — every case depends on its specific facts. Contact us to discuss your situation.