Prompt Payment Regime Takes Effect For Construction Projects

Sabrina Saltmarsh, B.A. (Hons), J.D.Arbitration, Condo Construction, Construction Equipment & Machinery, Construction Litigation, Cottage Litigation, Heavy Machinery Disputes, Mining, Infrastructure and Projects, Real Estate | Developers, Real Estate Litigation, Recreational Property, Recreational Property Litigation0 Comments

A major shift has been underway in Ontario since the legislature ushered in reforms under Bill 142, the Construction Lien Amendment Act, 2017, S.O. 2017, c. 24., perhaps none of which is more significant than the prompt payment regime which took effect on October 1, 2019. Changes To Lien Period: Effective July 1, 2018 Changes to the previous legislation (The Construction Lien Act) have come into effect in phases, with the first set of changes having taken effect in July of last year. We are now in the midst of transition rules which apply depending on the commencement date of a construction project to determine the applicable lien period which changed from 45 days to 60 days for prime construction contracts entered into after July 1, 2018. There were several additional notable changes which took effect as of July 1, 2018, including the extension of the period to perfect a … Read More

Condominium Limitation Periods and Timelines – Mark Your Calendar!

Fatima VieiraCivil Litigation, Commercial, Commercial Arbitration, Commercial Litigation, Condo Construction, Condo Litigation, Construction | Builders, Construction Litigation, Contract Disputes0 Comments

There is continuing intense activity in condominium development in Toronto, the Greater Toronto Area, Hamilton and the Niagara region. Once a condominium corporation is formed by registration of a declaration, it has a lot to do and review, within specific time lines. Getting the essential work done within those specific time lines is crucial to the protection of the rights and remedies of developers, condominium corporations and unit owners. Warranty review time lines occur at one-year, two-year and seven-year marks. If a one-year warranty claim is made, a 120-day period follows for repair or resolution by the builder. If there is no resolution and repairs are incomplete, the condominium corporation has 30 days to request conciliation or assistance with resolution of outstanding issues from the warranty provider.   The conciliation process typically involves inspection by a warranty services representative who then renders a decision as to whether the claims are … Read More

Entire Agreement Clause Upheld in Manorgate Estates Inc. v. Kirkor Architects and Planners

Janice Perri, B.A. (Summa Cum Laude)Appeals, Appellate Advocacy, Business Torts | Economic Torts, Civil Litigation, Commercial, Commercial and Contract Litigation, Commercial Contracts, Commercial Law, Commercial Litigation, Construction | Builders, Construction Litigation, Contract Disputes, Misrepresentation, Negligence, Real Estate | Developers, Real Estate Litigation0 Comments

Entire Agreement Clauses are meant to prevent negotiations that occurred prior to the contract being formed from influencing the Court’s interpretation of the terms set out in the final contract. In other words, past discussions are to have no bearing on the understanding of the contractual terms. In theory, a fully integrated agreement of this kind supplants any earlier oral or written agreements. There is competing jurisprudence in which Entire Agreement Clauses have been both effective and ineffective. However, Manograte Estates Inc. v. Kirkor Architects and Planners is a recent Ontario Court of Appeal decision where an Entire Agreement Clause was effective. In Manograte Estates Inc. v. Kirkor Architects and Planners, the Ontario Court of Appeal upheld the Motion Judge’s decision that the Entire Agreement Clause in the relevant agreement, regarding architectural consulting for a construction project, operated as a complete defence to the appellants’ claim of alleged negligent misrepresentation. The Entire Agreement Clause … Read More

Grounds for Judicial Intervention on International Arbitral Awards – Key Takeaways

Janice Perri, B.A. (Summa Cum Laude)Appeals, Arbitration, Commercial, Commercial and Contract Litigation, Commercial Arbitration, Commercial Leasing, Commercial Litigation, Construction | Builders, Construction Litigation, Enforcement of Foreign Arbitral Awards, UNCITRAL0 Comments

In Consolidated Contractors Group S.A.L. (Offshore) v. Ambatovy Minerals S.A., a decision of the Court of Appeal for Ontario, a USD$258 million project for the construction of a slurry pipeline from a nickel mine in the mountains of Madagascar to the coast lead to arbitration between the appellant (the contractor) and the respondent (tendered the project). After mutually agreeing to by-pass the adjudication stage of their three-stage dispute resolution process and go straight to a Tribunal, the appellant was only awarded $7M of its $91M claim and the respondent was awarded nearly $25M on its counterclaim. These awards were challenged on appeal as being made without jurisdiction, in breach of procedural fairness, and violating public policy. However, the appeal was dismissed. Judicial intervention in international arbitral awards under the United Nations Commission on International Trade Law (UNCITRAL) Model Law (the “Model Law”) – though given the force of law by the International Commercial Arbitration Act … Read More

Lost in Cyberspace : Legal causation in the age of AI and driverless cars

R. Lee Akazaki, C.S., B.A. (Hons.), J.D.Construction Litigation, Information Technology, Insurance, Technology and Internet, Trucking and Transportation0 Comments

One day, in the immediate future, you might very well witness this scene from your office window.   A lawyer jaywalks across a Toronto street to avoid being late for a firm risk management committee meeting.  While she does so, she texts her colleague in Calgary with instructions on containing the legal liabilities arising from a northern Alberta oil plant shut-down that has already occurred in the future (a reality of simultaneity across locally-logged events across a multi-timezone world) after an eco-terrorist hacked into the plant heating system. It is at this moment that she is struck by an autonomous delivery van. The van was travelling the wrong way down a one-way street because the city transportation department had not uploaded a temporary change to traffic direction to accommodate a condo developer.  An algorithm built into the telephone service to warn the lawyer of oncoming traffic fails to alert her because the … Read More

Under Construction: Major Reforms Coming To Construction Lien Act

Sabrina Saltmarsh, B.A. (Hons), J.D.Construction | Builders, Construction Litigation0 Comments

The Ontario government has tabled Bill 142, which if passed will result in fundamental changes to the Construction Lien Act (the Act) and will have a significant impact on payment and dispute resolution practices within the construction industry. The most significant of the proposed amendments to the Act is the introduction of a mandatory prompt payment regime. Prompt payment regimes have been in place for decades in some other jurisdictions including the U.K., and there have long since been calls for Canada and Ontario to adopt a similar model. The impetus in adopting a prompt payment regime within this unique sector is to curb the systemic plague of gridlock on construction projects which arise due to payment disputes and lack of payment which lead to project disruptions – a chronic industry phenomenon. The regime will also serve to protect the most vulnerable segments of the sector such as subcontractors, who can … Read More

Construction Heavy Machinery & Equipment Disputes

David Alderson, LL.B, LL.M (Commercial and Corporate), Q.Arb, Lawyer and ArbitratorCommercial and Contract Litigation, Commercial Leasing, Construction | Builders, Construction Equipment & Machinery, Construction Litigation, Contract Disputes, Contract Termination, Debt and Enforcing Judgments, Distributors | Dealers, Heavy Industries, Heavy Machinery Disputes, Injunction & Specific Performance, Sale of Goods, Trucking and Transportation0 Comments

We have experience and can act in matters relating to construction heavy machinery and equipment. Disputes often arise in connection with the purchase and sale, leasing, financing, use or operation of construction heavy machinery.  Sometimes disputes arise in relation to ownership or possession of  construction heavy equipment. We set out below some of the common types of disputes arising in relation to construction heavy equipment. Types of Disputes Common disputes include those related to: purchase and sale, pre-sale representations, warranties, damaged equipment, sale by auction, shipping heavy machinery and equipment, damages, loss and collapse, hire-purchase disputes, ownership and possession, and repossession by court order. Types of Construction Equipment A vast array of construction equipment is deployed in modern construction projects.  Some construction companies lease and others purchase. Some have only occasional need for some construction heavy equipment. Typical construction heavy equipment and machinery includes: Backhoe loaders, breakers, bulldozers, chippers, compactors, concrete plants and pumps, conveyors, … Read More