The defendant, Her Majesty the Queen in Right of Canada (TPSGC), brought a motion for summary judgment to dismiss the plaintiff's claim for additional costs, arguing that the limitation period had expired.
The plaintiff, Amor Construction, contended that the novation of the contract did not trigger the limitation period and that TPSGC acted in bad faith by refusing to engage in the contractual dispute resolution process.
The court found that the limitation period began when TPSGC explicitly rejected the claim on November 3, 2015, not upon contract novation in November 2012, given prior assurances and the nature of information requested.
The court also concluded that TPSGC's conduct constituted bad faith in the performance of its contractual obligations.
The defendant's motion for summary judgment was dismissed.
