Michael A. Valo

The appellant appealed the dismissal of its application for judgment against the respondent for $7,451,662.65 under a settlement agreement.

The parties had contracted for construction of the western portion of the Eglinton Crosstown Tunnel.

The respondent was required to obtain third-party liability insurance, with the appellant as an additional insured.

The appellant was responsible for paying 100% of deductibles for third-party claims.

After substantial performance, the parties settled outstanding contract disputes with mutual releases that included a clause preserving rights and obligations regarding insurance policies.

The respondent withheld $6.4 million from the final settlement payment, claiming it was due for outstanding deductible claims.

The appellant argued the settlement released it from deductible obligations.

The motion judge dismissed the application, finding the release did not release the appellant from its deductible obligations.

The Court of Appeal upheld this decision, finding the release language clearly preserved all rights and obligations relating to insurance policies, including deductible payment obligations.

The appellant, a contractor, challenged an international commercial arbitral award arising from a US$258 million pipeline construction project in Madagascar.

The appellant sought to set aside portions of the award on grounds of lack of jurisdiction over counterclaims, failure to exercise jurisdiction over prolongation costs, denial of procedural fairness regarding retention monies, hydro seeding costs, and costs awards, and violation of public policy regarding alleged double recovery from forfeiture of tranche payments and liquidated damages.

The application judge dismissed all claims.

On appeal, the court upheld the dismissal, finding that the tribunal had jurisdiction to hear the counterclaims, that the prolongation costs claim was addressed by the tribunal, that procedural fairness was afforded on all issues, and that the award did not violate public policy.