Key legal question
Whether the owner could offset damages allegedly caused by defects in the work against the contractor's unpaid balance.
Extracted holding
The owner had no compensable claim for the heating malfunction because the defect was attributable to the owner and the contractor could not reasonably have detected or warned about it.
Extracted reasoning
Where a defect stems from the owner's supplied material or pre-existing installation, the contractor is excluded from liability if the defect was not recognizable and no breach of duty to warn can be established in the circumstances.