Articles 2021

An 849-paragraph testament to the grinding weight of our civil justice system, the decision in Walsh Construction v. Toronto Transit Commission et al., 2024 ONSC 2782, was arrived at after a trial stretching over 19 months. In spite of the achievement that the decision represents, its findings on flow-through claims of subcontractors represent a potentially troubling precedent for the industry, and are puzzling as a matter of law. They bear further scrutiny on the appeal currently underway.

The Ontario Superior Court of Justice recently provided insight into what steps an owner must take to establish a defence of due diligence and avoid liability under the Ontario Occupation Health and Safety Act, R.S.O. 1990, c. O.1 (“OHSA”).

This is the first article in the 2024-2025 Newsletter’s Reflections series, featuring reflections on extraordinary careers by senior counsel in the construction bar. We are grateful to Duncan Glaholt for inaugurating this series.

Practitioners must remain attentive to their disclosure obligations. Any settlement agreement (or partial settlement agreement) reached between some parties, but not others, that entirely changes the landscape of the litigation in a way that significantly alters the dynamics of the litigation must be disclosed to the non-settling parties. The obligation to disclose is immediate and unequivocal.

The key takeaways from the Westport decision are that sureties will be entitled to assert priority against a wide range of funds, including those awarded in construction adjudications, as long as their indemnity agreements are drafted broadly. While ensuring the flow of funds through adjudication is important, a competing and equally important consideration is not disturbing the construction bonding regime.

Last month, the OBA Construction and Infrastructure Law Section hosted its 19th Annual Golf Day & Lunch Program at Eagles Nest Golf Club in Maple, Ontario. The sold-out event was a huge success thanks to our co-chairs, organizers, core sponsors and speakers.

In Sjostrom Sheet Metal Ltd. v. Geo A. Kelson Company Limited, 2023 ONSC 4959, the Ontario Superior Court of Justice affirmed several key legal principles, including the importance of carefully drafted pleadings, the validity of oral contracts, the significance of good record-keeping in quantifying damages, adherence to contractual default notice provisions, and the consequences that may flow from ambiguous or incomplete change orders.

In response to Walsh Construction v. Toronto Transit Commission et al., 2024 ONSC 2782, the Superior Court has a offered a number of valuable takeaways for the construction industry and construction law practitioners, including counsel and arbitrators, regarding what can be expected in the resolution of a complex construction claim.