Claimant Wins Unpaid Invoices but Loses Termination Fee Dispute
📌 In brief
The claimant asked for money for unpaid cleaning services and a termination fee. The respondent agreed to pay for the services but disagreed about the termination fee. The Tribunal ruled in favour of the claimant for the unpaid invoices but against the claimant for the termination fee.
⚖️ Legal holding
A party must provide 60 days' notice to terminate a contract unless there is a fundamental breach.
📚 Full judgment
The summary, holding and questions above are VadeLab’s own material. The official decision itself is published by the court, and we do not reproduce it on this page.
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The contract requires 60 days' notice to terminate.
- The termination fee is equivalent to two months of billing.
- The applicant's damages are calculated as net profits minus expenses.
❌ Tends to be rejected
- The respondent's dissatisfaction with the cleaning services did not constitute a fundamental breach.
- The missed cleanings were explained reasonably and did not amount to a fundamental breach.
- The substandard cleaning issues were deemed minor and did not rise to the level of a fundamental breach.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The claimant was awarded $1,455 for unpaid invoices but was denied the termination fee.
What was the dispute about?
The dispute was about whether the termination fee should be paid due to a breach of contract.
How did the court decide, and why?
The court decided in favour of the claimant for the unpaid invoices but against the claimant for the termination fee because the claimant did not prove a fundamental breach of the contract.
Which laws or rules were applied?
Civil Resolution Tribunal Act, s. 42 Civil Resolution Tribunal Act, s. 48(1) Civil Resolution Tribunal Act, s. 58.1
What was the argument that mattered most?
The argument that mattered most was whether the claimant proved a fundamental breach of the contract to justify the termination fee.
Was the decision for or against the person who brought the case?
The decision was partly for and partly against the claimant.
What does this mean for someone in a similar situation?
Someone in a similar situation should ensure they have strong evidence to prove a fundamental breach of contract if they wish to collect a termination fee.
What evidence or documents mattered?
Emails and invoices provided by both parties were important in making the decision.