Sidestepping Contracts: The Expansion Of Environmental Liability Where The Contractor Is Not Paid

The British Columbia Supreme Court's decision in Cordy Environmental Inc v Obsidian Energy Ltd ("Cordy Environmental") opens the door for contractors to pursue former owners and operators of contaminated sites with whom they have no contractual relationship to recover their unpaid fees.¹ The mechanism used by the contractor in this case to sidestep the standard fee recovery route was the cost-recovery provisions under British Columbia's Environmental Management Act (the "EMA"). Owners, operators and other parties responsible for contaminants should take note of the potential for this decision to broaden the scope of liability for contaminated sites when an environmental contractor is not paid.