Laura Delemere

A surety (Westport) brought an interpleader motion seeking a declaration of priority over funds awarded to a subcontractor (High Tech) in an ODACC adjudication, or alternatively, for the funds to be paid into court.

The funds were held in trust by the general contractor's (BDA) counsel due to competing claims.

The court found that Westport, as surety, had a valid security interest and trust claim over the funds based on the indemnity agreement with High Tech.

The court rejected High Tech's argument that the Construction Act's prompt payment provisions gave it priority.

However, the court also found that there were triable issues regarding Westport's good faith in processing claims and making advances, which precluded a final order for immediate payment to Westport.

Therefore, the court ordered the disputed funds to be paid into court pending the outcome of ongoing litigation between the parties.

The appellant, Black & McDonald Limited, appealed two orders staying their proceedings in Ontario in favour of British Columbia as the more convenient forum.

The first action was against Eiffage Innovative Canada Inc. and individuals for breach of contract and breach of trust related to a construction subcontract.

The second was against Liberty Mutual Insurance Company under a payment bond.

The Court of Appeal found that the motion judge erred in interpreting an "exclusive jurisdiction" clause in the prime contract as applicable to the subcontract, and that the forum non conveniens factors did not clearly favour British Columbia, thus the high standard to displace the plaintiff's chosen jurisdiction was not met for the Eiffage action.

For the Liberty Mutual action, the Court found the forum selection clause in the payment bond ambiguous and resolved it against Liberty Mutual, also noting the public policy against multiple proceedings risking inconsistent findings.

The appeals were allowed, and the actions were permitted to proceed in Ontario.

The defendants brought a motion to stay two actions commenced in Ontario, arguing that British Columbia was the more appropriate forum based on contractual choice of law and jurisdiction clauses related to a construction project.

The plaintiff opposed the motion and brought a cross-motion to compel arbitration.

The court granted the defendants' motion to stay, finding that despite Ontario having jurisdiction simpliciter, British Columbia was the forum conveniens due to the clear contractual terms and the location where the factual matters arose.

The plaintiff's cross-motion to compel arbitration was dismissed, with the court noting that the arbitrator should determine their own jurisdiction in the first instance.

Costs were awarded to the successful defendants.

The City of Windsor entered into confidential settlement agreements with eight third-party subcontractors, which included indemnities and assumption of liabilities, fundamentally altering the litigation landscape.

The City failed to immediately and fully disclose these agreements to the general contractor (Southside Construction) and the architects, despite multiple opportunities and court orders.

The court found this non-disclosure constituted an abuse of process, as it created a circularity in claims and prejudiced the non-settling parties by forcing them to incur significant costs to uncover the true nature of the agreements.