Contractor Payment Dispute and Defective Work Damages

A contractor, hired to construct a building, brought an action against the owner for payment of the final installment, but the owner counterclaimed for damages based on defects requiring demolition and rebuilding of the structure, which the lower court had rejected, finding that the contractor had completed the work as specified in the contract, despite the presence of defects, which were minor enough that they did not compromise the building's general stability. The high court quashed the decision, reasoning that the trial judge's finding that the defects did not affect the building's general stability did not preclude the owner from being entitled to damages for the partial failure of the work, as the contractor's obligation was to deliver a work perfectly conforming to the contract specifications, and even minor defects could justify compensation.