The Court of Appeal dismissed OCHC’s appeal from an order striking its implied warranty and negligence claims against Sloan and Wolseley. The court held that an implied warranty under s. 15 of the Sale of Goods Act is available only against a “seller,” and Sloan was not a seller on the pleadings, following Arora v. Whirlpool.
The negligence claim was properly struck because the pleaded losses were pure economic loss. The court rejected OCHC’s argument that “lost water” was its property and confirmed that the case fit within the shoddy-goods line of authority under 1688782 Ontario Inc. v. Maple Leaf Foods Inc. and North v. BMW. The SGA claim against Sloan was struck without leave to amend; the negligence claim was struck with leave only to fold certain allegations into negligent misrepresentation.
