Liens outstanding at incinerator
Contractors remain unpaid two years after incinerator completion
According to court documents, several contractors involved with the construction of the DYEC, have yet to be paid by Covanta for their efforts. (Oshawa Express file photo).
By Dave Flaherty/The Oshawa Express
More than two years after the facility opened, court documents show several construction liens and other claims have resulted from work on the Durham York Energy Centre.
The centre, which is owned by Durham and York Regions, and operated by American-based company Covanta, opened in January 2016.
Public documents state there are currently more than 20 liens and other claims in relation to the project ongoing.
Construction liens are claims made against a property by a contractor, subcontractor or other professionals who have supplied labour or materials for work on that property.
However, in this case, the municipalities, as owners of the facility, were absolved of the responsibility of dealing with construction liens from subcontractors when Covanta posted security in court.
James Regan, director of corporate communications for Covanta, said the company is not in a position to comment on the liens still in progress.
As is common with large construction infrastructure projects, at the end of the Durham York Energy Centre project a number of liens were registered by entities involved in the construction of the facility,” Regan stated in an e-mail. “Covanta posted security in Court to vacate all of the liens, leaving the property unencumbered. There are currently no liens registered against the property and facility, and no lien proceedings involving the Regions.”
Durham Region communications manager Joanne Paquette reiterated this.
“There are currently no liens registered on title and Covanta alone is dealing with the claims of its contractors and sub-contractors,” Paquette wrote in an email, “The Region has no interest or position in any of those claims and therefore cannot comment on the merits or status of same.”
The aforementioned court documents result from a hearing in the Ontario Superior Court of Justice on Feb. 14, 2018.
During the construction of the DYEC, Covanta subcontracted Courtice Power Partners (CPP), a joint venture of Barton Marlow Canada Inc. and Kenaidan Contracting Ltd., for supply and construction-related services.
CPP then entered into various sub-subcontracts with other companies for the supply of labour, equipment, and services required to complete the work.
The agreement between CPP and Covanta included an arbitration provision, with the dispute being the subject of an “ongoing and lengthy arbitration proceeding,” according to court documents.
Approximately 79 hearing days have taken place in this process, which includes CPP advancing claims made by its sub-contractors against Covanta.
Two of those sub-contractors, Coco Paving (Coco) and General Sprinklers Ltd. (GS), filed motions to have their claims move ahead, citing they have been waiting three years to get paid, according to February citation.
However, during the Feb. 14 hearing, Master R.A. Muir granted a temporary stay on actions commenced by Coco Paving and General Sprinklers, as requested by CPP.
In making this request, CPP had argued, “it is doing everything it can to collect from Covanta. It is advancing all of its sub-trades’ claims, including those of Coco Paving and General Sprinklers through the arbitration process. CPP states that it is impossible to determine the important matters at issue in the Coco and GS claims until the arbitration has been completed.”
In agreeing with CPP’s request, Muir noted, “It is therefore just in the full circumstances of these actions that Coco and GS should wait and see what happens with the arbitration before advancing their claims any further. I agree with CPP.”
Muir did place a deadline of the stay of proceedings for Oct. 31, 2018.
“If it appears at some point in the future that CPP is not continuing to pursue the arbitration in a diligent fashion or if delays continue for other reasons, the stay can be revisited. In addition, by placing a time limit on the stay, CPP will be required to return to court to justify any further extension of the stay of proceedings. These terms will ensure Coco and GS are not indefinitely delayed,” he wrote.
It is noted in the court file that hearing dates were scheduled through April 5, 2018, and subsequent court dates were possible.
No dollar amounts in regards to liens or other claims appeared in the court document. The Oshawa Express attempted to obtain further details as to the dollar figure from Ontario Land Registry documents, which usually obtain data on any liens. However, because Covanta posted security to vacate the liens, they do not appear on the land registry documents fo the DYEC.
Calls to lawyers for CPP, Coco Paving, and General Sprinklers were not returned as of The Oshawa Express’ press deadline.