Motion: GCNA sought an extension of time to serve the statement of claim or validation of service as of March 16, 2022.
Decision: Motion dismissed.
Background
- The Guarantee Company of North America (GCNA), a surety, issued six labour and material payment bonds (2014-2016) to Maram, a general contractor, and a construction lien bond for another project.
- Defendants, Mary Tatiana Picard, Maram Building Corporation, Tyler Scorpion Holdings Inc., and Demcor Construction Services Inc., signed a 2014 Indemnity Agreement, obligating them to reimburse GCNA for bond payouts.
- GCNA paid $409,755.20 under the bonds and sought indemnification plus $50,000 in expenses.
- The statement of claim was issued on October 17, 2018, requiring service by April 17, 2019, but no service attempt was made until March 2022.
Court's Analysis & Findings
- Delay & Lack of Justification:
- GCNA’s law firm (BLG) failed to serve the claim for over three years, despite internal reviews.
- Lawyers responsible for the file did not explain the oversight.
- GCNA’s representative followed up only once (April 2019) and did not monitor progress.
- Prejudice to Defendants:
- Lost records: Maram’s server failed in 2021; Demcor’s documents were destroyed.
- Missed legal claims: Maram lost the ability to recover unpaid amounts from project owners.
- Defendants reasonably assumed the claim was abandoned due to GCNA’s three-year silence.
- Ruling: Extension would unfairly prejudice defendants; motion denied.
Conclusion
- Motion dismissed.
- Costs: Parties may agree; if not, submissions due by March 28, 2025. The court did not specify an exact cost award in the decision.