This decision concerns a summary judgment motion brought by Avison Young Real Estate Management Services LP (Avison) against 4342 Queen St Niagara Holdings Inc. (Queen) on Avison's crossclaim for indemnification.
Avison, as property manager for Queen, had retained Arcamm Electrical Services Ltd. to restore power to Queen's property after an electrical failure.
Arcamm was not paid and sued both Avison and Queen.
In a prior decision, Queen was found liable to Arcamm, but Avison was not.
Avison sought indemnification from Queen under their Real Estate Management Services Agreement (REMSA).
Queen argued that the indemnity provisions did not apply due to lack of a written contract with Arcamm and alleged Avison's gross negligence.
The court found that Avison had "executed" a contract with Arcamm in the ordinary sense, triggering Queen's indemnity obligations under sections 4.11 and 5.4 of the REMSA.
The court rejected Queen's argument that section 11.1 (gross negligence exception) applied to Arcamm's debt claim, finding it pertained to different circumstances.
Queen's crossclaim against Avison was dismissed, and Avison's motion for summary judgment on its crossclaim for indemnification was granted, including past and future legal costs.