Legal Notes: Paying into the court can extricate owners from payment disputes

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The Opaskwayak Cree Nation in Manitoba found itself entangled with a dispute it had little to do with. They wanted subcontractors that were hired and owed money by their general contractor to be paid and thereby be able to stand aside from a payment dispute.

“Opaskwayak had no real dispute with any of the parties, nor did it claim a beneficial interest in any portion of the $1.2 million,”To remove itself from further litigation, Opaskwayak brought an interpleader application seeking permission to pay the $1.2 million into court. Justice Anne Turner of the Court of King’s Bench of Manitoba began by ruling the subcontractors’ claims, including those for interest, were not frivolous.

“The payment into court of the full amount of the funds allows the subcontractors and Razar to present their cases for a final determination. That determination may include interest and other payments owed to the subcontractors.” Likewise, the justice supported Opaskwayak’s desire to use the $1.2 million payment to clear itself of the contractor-subcontractor dispute.

 

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