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ARTICLE · 21 JUNE 2012

How Many Times Can A Contractor Sue The Owner Under The Same Construction Contract?

McCarthy Tétrault
McCarthy Tétrault
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Can a contractor bring several claims against the owner arising from the same building contract?

CanadaCorporate/Commercial Law

Can a contractor bring several claims against the owner arising from the same building contract? Multiple proceedings arising from the same contract certainly seem like a waste of time and money.

And even if the contractor can do so, can those claims be asserted first in arbitration and then in court litigation? Once again, different proceedings before different tribunals seem abusive.

The Alberta Court of Appeal recently held that multiple proceedings by the contractor are justified in some circumstances. In Hnataik v. Assured Developments Ltd, the Court held that the contractor could sue the owner after bringing an arbitration claim against the owner. The Court allowed the court claim to proceed because that claim was different than the claim in the prior arbitration and was not reasonably known to the contractor at the time when the pleadings were delivered and evidence was led in the arbitration.

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