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.