Legal Notes: Once again, an arbitration ruling is confirmed on appeal - constructconnect.com - Daily Commercial News

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John Bleasby's latest Legal Notes column looks at how 'once again, an arbitration ruling is confirmed on appeal.'

Brockville had entered into several contracts with Tall Ships to remediate a brownfield area and build a 27,000-square-foot mixed-use residential/commercial condominium property. Tall Ships would do the work, receive various management fees and ultimately sell the finished project to the city for about $7.5 million.

Second, claims for the additional building costs were denied. The arbitrator ruled that, in its role as construction manager, Tall Ships failed to keep Brockville properly informed of the extra costs. They also cited a lack of good faith and various arbitrary and unreasonable actions taken. Also dismissed was Tall Ship’s suggestion Brockville had gained unjust enrichment.

Not satisfied, Tall Ships appealed to the Ontario Superior Court. Here, all three claims were reversed in favour of Tall Ships.

 

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