Relief From Forfeiture: Imperfect Compliance Vs. Non-Compliance

In Todd Brothers Contracting Ltd. v Wessuc Inc., the Ontario Court rejected Wessuc's claim on a Labour and Payment bond due to failing to meet the bond's strict notice requirements and unreasonable behavior. The Court examined the concept of relief from forfeiture, noting that it applies only in cases of "imperfect compliance" rather than outright non-compliance. Wessuc's delayed and inaccurate notice to the surety, combined with their unreasonable conduct, disqualified them from relief. This ruling underscores the need for construction companies to adhere closely to bond requirements and provide timely, accurate notice when making claims.

Labour and payment (L+M) bonds are common on large construction projects. They allow unpaid subcontractors and suppliers to make a claim against the party issuing the bond (the surety) for payment of unpaid amounts. In order to make a claim on an L+M bond, a claimant must meet the bond's strict time requirements, and provide