The applicant, Fermar Paving Limited, brought an application seeking a declaration that the Ministry of Transportation (MTO) was not entitled to claim liquidated damages for a delay in a road resurfacing contract, or alternatively, that the claim was unenforceable for a specific period.
The applicant argued that the respondent caused a concurrent delay by issuing and then cancelling "Additional Work" (CO #13) and that a prior settlement of Claim #3 did not bar the current application.
The court found that the settlement of Claim #3 was ambiguous regarding Claim #2 and applied *contra proferentem* against the respondent, thus allowing the applicant to proceed.
However, the court ultimately dismissed the application, finding that the "Additional Work" (CO #13) was irrelevant to the delay in completing the Automated Traffic Management System (ATMS) work, which was the "Controlling Operation." The court concluded that the applicant alone caused the delay and failed to properly request an extension of time as per the contract, thus the respondent was entitled to charge liquidated damages.