Province of Ontario Sued for Breach of Contract

The province of Ontario is facing a $300 million lawsuit with respect to the cancelled natural gas-fired electrical power plant in Mississauga.

Construction on the 280-megawatt plant had already begun when it was cancelled last fall by the Liberal government during the provincial campaign. The generator was a controversial project for residents of Mississauga, and in particular in the southeast neighbourhoods where it would have been built. Concrete foundations had already poured.

The suit has been filed by EIG Management, an investment company based in Washington D.C., which is looking for $10 million in damages against Ontario Power Authority and the province in addition to the standard award for breach of contract. They claim that they were given no advance notice of the cancellation, and that the company only learned of it when Premier Dalton McGuinty made an announcement to that effect on the election trail.

The province has indicated they will be “vigorously defending” their interests against the claims. None of the allegations have been proven, but the suit will hinge on the terms of the contract and the actual circumstances of how it was terminated.

Breach of Contract Awards

The standard claims for a company or individual in this situation would be monetary damages. The legal principle is that the innocent party should be restored to the same state they would have been in had the breach of contract not taken place.

In special circumstances, such as a dispute over real estate, the innocent party may ask the court for an order for specific performance, which means the party who breached the contract will have to fulfill the obligations in the agreement.

Get Legal Help

If you find yourself in a situation where you feel a contractual arrangement has been breached, we can help.

  • We’ll review the contract to determine whether the other party has fulfilled its terms
  • If we determine that a breach of contract has occurred, we can offer Alternative Dispute Resolution (ADR) services to attempt to settle the matter quickly and in a cost-effective matter
  • If litigation becomes necessary, we’ll pursue your interests aggressively

Time is of the essence, and there’s a limited period where you can take action in a case of breach of contract. Legal representation is a must not only in sorting it out to your advantage in the case of a dispute, but also strongly recommended from the outset to ensure that any arrangements entered into, whether enshrined in writing or not, work for you.

Contact Petrillo Law today for a free consultation with an experienced contract lawyer today. We look forward to hearing from you.

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