Construction Law - Proceedings - Practice and procedure - Costs

Pillar Resource Services Inc. v PrimeWest Energy Inc. - [2017] A.J. No. 41, - Alberta Court of Appeal, - J.D.B. McDonald, M.B. Bielby and T.W. Wakeling JJ.A., - January 20, 2017. - Digest No. 3637-002

Law360 Canada ( February 9, 2017, 7:00 PM EST) -- Appeal by the defendants, the PrimeWest companies and TAQA, from an order of full-indemnity costs payable to the plaintiff, Pillar Resource Services. The underlying litigation arose from the plaintiff’s claim for unpaid amounts under a cost-plus construction agreement in respect of a complex project involving a sour gas processing plant. Following a lengthy trial, the trial judge awarded the plaintiff approximately $850,000 for breach of contract. In a separate decision, the plaintiff was awarded full indemnity costs due to misconduct by the defendants. The trial judge cited the cumulative effect of the defendants’ misleading requests for further information during pre-litigation negotiations, the defendants’ attempts to introduce additional evidence in their post-trial written argument, the additional trial time necessitated by the defendants’ refusal to admit facts ultimately not in issue, and unproven allegations of fraud maintained until trial, but not addressed by the defendants at trial. The defendants appealed the costs award....

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