VRCA, CCA displeased by Supreme Court of Canada decision to dismiss appeal on use of reprisal clauses by the City of Burnaby

Date Posted : Dec 16, 2019

VANCOUVER – The Vancouver Regional Construction Association (VRCA) joins with the Canadian Construction Association (CCA) in expressing their displeasure to learn that the Supreme Court of Canada has dismissed an appeal brought forward by contractor, J. Cote & Son Excavating.

Last week’s decision effectively upholds the use of “reprisal clauses” in tender documents. The clause used by the City of Burnaby against J. Cote & Son Excavating stated that the city would not accept tenders from any party that is, or has been within the last two years, involved in legal proceedings initiated against Burnaby arising out of a contract for works or services.

“The clause effectively forces consultants or contractors who may have a dispute with the city to choose between pursuing their legal rights and bidding on city contracts for the next two years,” said Mary Van Buren, CCA president.

See the post.