Background:
Canadian Construction Materials Engineering & Testing Inc. (CCMET) sued Allied Paving Co. Ltd. (Allied) for $413,254.74 for unpaid work under a subcontract for a road construction project. Allied counterclaimed for $2 million, alleging delays, errors, and breaches by CCMET. Allied later sought to amend its counterclaim to add allegations of fraud and punitive damages, claiming CCMET knowingly misrepresented test results.

Key Issues:

1. Amendment of Pleadings: Allied argued new grounds for fraud arose from Mahdi Ali’s discovery testimony. CCMET opposed, citing delay, limitation periods, and insufficient particulars.
2. Limitation Defence: CCMET claimed the fraud allegations were time-barred.

Decision:
The court allowed Allied’s amendment, finding the allegations sufficiently particularized under procedural rules. While the delay was lengthy (4 years), the court accepted Allied’s explanation that it only learned of potential fraud during Mr. Ali’s discovery, delayed due to CCMET’s miscommunication. The Associate Judge appropriately preserved CCMET’s limitation defence for trial.

Outcome:
The appeal was dismissed. Allied was permitted to amend its counterclaim, but no final award was made. The amounts claimed by both parties remain unresolved pending trial.