The company behind two multi-million dollar contracts that were cancelled by government has filed Statements of Claim in the Supreme Court of NL seeking damages for wrongful termination and repudiation of the contract.
JMJ Holdings claims that the provincial government had “no right under the contract or at law to cancel the contract” on the Stephenville Crossing Courthouse, and it blames the province for subsequent construction delays.
In June, the province cancelled contracts for Cartwright school and the courthouse in Stephenville Crossing citing “significant” cost escalation risks, lengthy delays and design issues.
(VOCM News)
In its statement of claim, JMJ Holdings argues that the cancellation was a “fundamental breach” and that the province failed to provide the company “accurate and complete information in its possession” about the building in Stephenville Crossing and the site. The company alleges that government withheld a hazardous materials assessment dating from August of 2022 until January 27 of this year.
The Statement of Claim also alleges that the province advised JMJ that known hazardous materials at the old College of the North Atlantic site had been removed.
Residents of Cartwright held a demonstration following the cancellation of the contract (Photo via Sandra Mugford)
The company says since the projects were halted, its subcontractors and suppliers have made claims against them, and that the subsequent claims, bond claims and liens are the “direct and foreseeable result” of the province’s wrongful actions, and of the delays it has caused.
The Cartwright school contract was valued at $38.4 million, while redevelopment of the old Martin Gallant Building in Stephenville Crossing was valued at $28.6 million.
