GSI Environnement Inc. sued the City of Ottawa for unpaid invoices related to a biosolids disposal contract.
The City counterclaimed for breach of contract, alleging GSI wrongfully repudiated the agreement.
GSI argued the City breached the contract first by supplying non-conforming biosolids due to Quebec regulatory changes.
The court found that a 2007 amendment to the contract addressed the non-conforming biosolids issue by adjusting the pricing structure, and alternatively, any breach by the City was not fundamental.
Although the City's counterclaim was statute-barred, the court allowed an equitable set-off, effectively denying GSI's claim.
The City was awarded judgment against EnGlobe Corp. for unpaid disposal costs.
