Marc C. Doucet

Following the dismissal of the defendant municipality’s motion for summary judgment, the plaintiff sought substantial indemnity costs.

The plaintiff argued that the municipality advanced unfounded allegations that the plaintiff corporation was a “sham” created to circumvent the Fairness is a Two-Way Street Act (Construction Labour Mobility), 1999.

The court held that although fraud was not ultimately pursued, the allegations effectively challenged the plaintiff’s honesty and business integrity, justifying substantial indemnity costs.

However, the court found the time spent preparing the motion response excessive and reduced the amount claimed.

Costs were awarded on a substantial indemnity basis in the reduced amount plus disbursements.

The defendant municipality brought a motion for summary judgment to dismiss the plaintiff's breach of tender claim.

The defendant argued that the plaintiff, an Ontario corporation, was an ineligible bidder under the Fairness is a Two-Way Street Act because the effective bidder was its related Quebec corporation.

The court dismissed the motion, finding that the plaintiff had effectively relocated to Ontario by establishing a corporate office and expanding its operations in the province, thereby exempting it from the restrictions of the Act.