Toronto Area Contractor in Breach of Contract Battle

A breach of contract battle royale is shaping up between a Toronto area construction contractor and the city of Belleville Ontario, east of Toronto.

At issue is a contract regarding the Quinte Sports and Wellness Centre, a multi-million dollar project under the city’s recreation, culture and community services department. Originally, the project was projected to cost just over $28.5 million and open in March of 2011. The facility actually had its opening in August of this year with costs ballooned to over $35.5 million.

In early August, the city began terminating the contract due to what it has called delays and deficient work. The Atlas Corp. reacted with its own contract termination procedures for non-payment. Atlas is suing the city and the mortgage holder for more than $12.5 million for both breach of contract and negligence. The city is in the process of filing its statement of defence in the matter to the tune of $25 million against Atlas, largely to protect itself against liability to sub-contractors. Fourteen sub-contractors have joined Atlas in filing a construction lien against the city in excess of $17.5 million. A ‘construction lien’ is a remedy specific to that industry that acts to secure payment for work already completed for projects like this one.

Key Issues

The main points of contention seem to be the delays in opening the facility and what the city is calling deficiencies in the work already completed. In turn, the contractor claims work done was not paid for in full. The case, while complicated, highlights some key issues that can arise in many breach of contract cases.

  • Changes to issues specified in the contract – the contractor alleges that the “deficient” work actually involves features and design revisions that were added on after the contract was commenced
  • Non-payment – the city was short on their payments
  • Terms agreed upon – disputes over what exactly was covered under the original agreement

Prevention is the Best Remedy

Before you sign on the dotted line – if you’re in the process or thinking of entering into an employment contract, then contact our experienced breach of contract lawyers for advice. Clarity on the issues covered by a contract is your key to understanding your rights.

Your Employment Contract

You may not have a multi-million dollar project underway, but if you’re already working under an employment contract, you’ve negotiated the terms for any number of good reasons and they’re all important. If you feel your employer has neglected to follow through on their side of the obligations in any way, you owe it to yourself to get the best legal advice.

You only have a limited time to take action in a breach of contract case. If you think your rights under a contractual agreement are being disregarded contact Petrillo Law today for a free consultation with an experienced contract lawyer. We look forward to hearing from you.

Get the Legal Representation You Need

Know your rights. Contact the breach of contract lawyers at Petrillo Law today by calling (905) 949-9433. We look forward to hearing from you.

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