Island Lake with blades of green grass in the front on a nice sunny day

Appeal of Graillen/ROHES dismissed; court awards costs to Town

Jun 22, 2017 | Council | General

The Court of Appeal for Ontario dismissed an appeal by Graillen Holdings Inc. and Region of Huronia Environmental Services Ltd. (ROHES) of a judgment in favour of the Town of Orangeville issued by the Superior Court of Justice in June of 2016. The Town was awarded appeal costs of $45,000.

At trial, the Town was successful in its defence of a lawsuit brought against it when Graillen Holdings and ROHES sued Orangeville as part of a contract tendering dispute. The plaintiffs sought $3.5 million in relation to a pair of alleged wrongs by the Town. The facts are briefly outlined below and copies of the court decisions are available from the Town upon request.

In their action, the companies alleged that Orangeville had wrongly failed to award a service contract to them and had wrongly terminated an agreement to purchase land. In response, the Town of Orangeville claimed for the return of the $250,000 deposit it paid in connection with the land purchase.

At trial, in addition to getting a return of its deposit, the Town also received an award of costs of $259,608.

From 2002 to 2010, the companies provided collection, haulage, storage and disposal services to the Town for its biosolids waste. The contracts with those companies and the Town ended in November of 2010.

Orangeville issued a call for tenders in August 2010 for the work. The Town also entered into an agreement of purchase and sale with Graillen to purchase its lagoons for storage of biosolids waste. The agreement contained a termination clause.

The Town ultimately awarded the tender to another company, Entec Waste Management Inc. Its bid included a different method of dealing with the biosolids called dewatering that eliminated the need for biosolid storage, and thus the Town no longer needed the land that was the subject of the conditional Agreement of Purchase and Sale with Graillen.

The Town terminated the agreement of purchase and sale with Graillen and sought a return of its deposit for the land purchase. The company refused and legal proceedings were then commenced by Graillen and ROHES.