A judge says the City of Guelph was wrong to fire a construction company over delays to its $42 million city hall renovation project.
Urbacon Building Corporation was dismissed by the city in 2008.
The project was behind schedule and Mayor Karen Farbridge says council believed it was in the best interest of taxpayers to terminate Urbacon.
“We had legal advice at the time that this was a decision we could make and should make given the circumstances.”
After the city ordered Urbacon off the site the company filed a $19 million wrongful dismissal lawsuit. The city countered sued for $5 million.
In court, Urbacon argued the delays were caused by the city's decision to change the building design during construction.
A superior court judge has ruled in the contractor’s favour, saying the city didn’t have the right to fire Urbacon.
The city says it will wait until the judge's decision is released before it decides whether or not to appeal the judgement.
Mayor Farbridge says the judge’s decision is disappointing. “It’s frustrating for us and I understand that it’s frustrating for the community as well.”
Damages will be determined at a trial set for the fall.
Ann Pappert, Guelph’s Chief Administrative Officer, says the city has a good track record when it comes to construction projects.
“We’ve done $350 million worth of construction work in the last 7 years. That’s over 400 contracts. Very few have resulted in the matter going before the courts.”
Urbacon did not respond to CTV’s request for comment.
