Thermo Applicators Inc. v. Razar Contracting Services Ltd. et al
THERMO APPLICATORS INC.
Law Firm / Organization
Holloway Thliveris LLP
RAZAR CONTRACTING SERVICES LTD.
Law Firm / Organization
Not Specified
Lawyer(s)

Peter Halamandaris

EVOQUA WATER TECHNOLOGIES CANADA LTD.
Law Firm / Organization
Not Specified
THE GUARANTEE COMPANY OF NORTH AMERICA
Law Firm / Organization
Not Specified
INTACT INSURANCE COMPANY
Law Firm / Organization
Not Specified

Key Issues:

  • Thermo Applicators Inc. filed a motion for summary judgment regarding unpaid invoices for insulation work performed at Simplot Canada’s potato processing plant.
  • The claims are based on The Builders’ Liens Act (BLA).

Facts:

  • Evoqua was the prime contractor hired by Simplot. Evoqua subcontracted to Razar, who then hired Thermo for insulation work.
  • Thermo's work was performed between fall 2019 and June 2020, with invoices totaling $609,121.86. After partial payments, $469,885.16 remained unpaid.
  • Razar disputed two invoices totaling $94,699.16, claiming the work was outside the contract's scope.
  • Thermo filed liens against Simplot’s property, which were vacated upon Evoqua posting lien bonds.

Court Findings:

  • Razar's "pay when paid" defense was rejected.
  • Thermo's liens were deemed validly perfected.
  • The court dismissed the remainder of Thermo's motion for summary judgment, finding that issues involving the state of accounts and claims among Thermo, Razar, and Evoqua require a trial.

Decision:

  • Granted:
    • Summary judgment declaring the rejection of the "pay when paid" clause.
    • Declaration of Thermo’s liens as validly perfected.
  • Denied:
    • The remainder of Thermo’s motion for summary judgment.

Recommendations:

  • Consolidate related actions (Thermo's, Thorpe Construction Ltd.'s, and Razar's) for a common pre-trial process overseen by one judge to streamline proceedings and ensure coordinated discovery and trial preparation.

Costs:

  • Each party to bear their own costs regarding the motion. No amount specified.

Erratum:

  • Correction issued on June 1, 2023, to amend a typographical error on page 2 of the judgment.
Court of King's Bench Manitoba
CI 20-01-29304
Civil litigation
Plaintiff