John Bleasby's latest Legal Notes column focuses on key lessons concerning the adjudicator’s role and limitations.
Mr. Pasqualino entered into a fixed-price agreement with renovator contractor MGW-Homes Design Inc. . However, a dispute arose causing MGW to put a lien on the home of about $170,000, followed after by a statement of claim. Pasqualino responded by posting $211,000 with the Ontario Superior Court as security, which vacated the lien, and issued a statement of defence and counterclaim. MGW in turn filed for adjudication. The adjudicator ruled Pasqualino must pay MGW nearly $120,000.
“The simplified and expeditious process of construction adjudication would be defeated if the adjudicator was required to make potentially complex factual and legal determinations on whether a contract was abandoned or terminated, and if so, whose fault it was.” “Termination or abandonment does not mean the contract or subcontract has ‘ceased to exist,’” says Conrod.“The language of the Construction Act does not contain the words ‘abandon’ or ‘terminate’ as a ground under section 13.18 for judicial review,” they explain.
“The divisional court found that adjudications are not intended to be available only while construction proceeds,” writes Conrod.
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