Quanta Canada Holdings II ULC v Bremar Construction Ltd
Quanta Canada Holdings II ULC
Law Firm / Organization
McLean & Armstrong LLP
Bremar Construction Ltd.

Key Issues

  • Quanta's Appeal: Quanta sought leave to appeal an arbitration decision, arguing the arbitrator misinterpreted the Subcontract.
  • Bremar's Position: Bremar contended that Quanta’s issues were factual or mixed fact and law, not pure legal questions, failing the statutory test for appeal.

Background

  • Prime Contract: Between Quanta and ENMAX for a duct and manhole system in Calgary.
  • Subcontract: Between Quanta and Bremar, based on the standard CCA 1-2008 form.
  • Dispute: Involved the cost responsibility for removing and replacing parts of the duct bank installed by Bremar.

Arbitration and Decision

  • Arbitration Hearing: March 6-15, 2023
  • Decision Date: July 12, 2023
  • Arbitrator's Findings:
    • Quanta could order inspections but had to bear costs if work was not defective.
    • Quanta's directions were considered inspections, not defect determinations.
    • Bremar met notice requirements; Quanta's decision didn’t trigger the notice period.
    • Awarded Bremar $8,137,116 plus 80% of legal fees.

Court's Analysis

  • Arbitration Act s 44: Allowed appeals on legal questions unless otherwise agreed.
  • Importance to the Parties: The appeal's financial stakes ($5,121,518) and broader industry implications were significant.
  • Questions of Law: The court found no pure legal questions, only mixed fact and law.

Conclusion

  • Application Denied: The court dismissed the application for leave to appeal, affirming the arbitrator’s decision.
Court of King's Bench of Alberta
2301 10599
Civil litigation
$ 8,137,116
Respondent