The Guarantee Company of North America v Picard
The Guarantee Company of North America
Law Firm / Organization
Koskie Minsky LLP
Mary Tatiana Picard
Law Firm / Organization
WeirFoulds LLP
Maram Building Corporation
Law Firm / Organization
WeirFoulds LLP
Tyler Scorpion Holdings Inc.
Law Firm / Organization
WeirFoulds LLP
Demcor Construction Services Inc.
Law Firm / Organization
WeirFoulds LLP

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.
Superior Court of Justice - Ontario
CV-18-00607141
Civil litigation
Defendant