Legal Blog

Arbitration

Canadian Medical Association v. EllisDon Corp. Ont 2015 SCJ

Construction was completed in 2001. The prime contract had an arbitration provision. The building was substantially damaged by fire in 2013. The owner claimed by way of a statement of claim in 2014 that improper erection of insulation boards caused the fire. The owner sued 10 defendants including the prime contractor, architects, engineers, and municipality. The plaintiff/owner then moved to have its claim against only the contractor determined by arbitration. The judge refused the motion holding that (i) the arbitration provisions was meant to apply when the project was still ongoing, not for a fire occurring 11 years after completion; (ii) the owner elected to sue multiple defendants and to permit 2 separate methods of proceeding against the contractor would be unfair.

Written by Jonathan Speigel Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.