9 Jan 2025
Blackstone Paving and Construction Limited v. Newmarket (Town)
Background:
- Parties: Blackstone Paving and Construction Limited (Plaintiff) vs. Town of Newmarket (Defendant).
- Main Action: Blackstone sued Newmarket for non-payment related to the 2014 Srigley Street Road Reconstruction Project.
- Counterclaim by Newmarket: Alleged breach of contract, seeking damages and declarations against Blackstone.
- Third-Party Claim: Newmarket sought contribution and indemnity from R.V. Anderson Associates Limited (RVA).
Settlement of Third-Party Claim:
- In 2023, Newmarket and RVA settled with a release and a confidentiality clause.
- Blackstone contested non-disclosure of this settlement, arguing it constituted an abuse of process.
Legal Issues:
- Whether the settlement altered the litigation landscape, mandating disclosure under established jurisprudence.
- Relevant test: A disclosure obligation arises if the settlement changes the dynamics of the litigation (e.g., shifting adversarial relationships).
Court’s Findings:
- The settlement did not alter the adversarial dynamics between Blackstone, Newmarket, and RVA.
- Cooperation provisions in the settlement were procedural, ensuring witness attendance, and did not affect substantive litigation strategy or positions.
- The test for mandatory disclosure under the Aecon and Poirier cases was not met.
Outcome:
- Blackstone’s motion to stay the counterclaim was dismissed.
- Costs of the motion were reserved pending the trial outcome.