Lawsuit claims St. John's owes company $500K over Canada Summer Games work

Lawsuit claims St. John's owes company $500K over Canada Summer Games work

Legal action relates to 2025 Canada Games track, turf and field and training centre

A company that completed work for the City of St. John’s in the lead up to the 2025 Canada Summer Games says it was promised more money if it met certain deadlines — and now it has turned to the courts to try to get it.

According to a statement of claim filed in the Supreme Court of Newfoundland and Labrador by Lindsay Construction last month, in April of 2023, the company entered into a contract with the city to construct the city's new track, turf and field and training centre, valued at $31,998,750 including HST.

The company alleges the contract also included financial incentives if it completed certain work by deadlines, which included the track field and turf by Sept. 30, 2024 for an additional $500,000.

"Lindsay states they have achieved the milestone, however the city has refused to pay the incentive," reads the statement of claim.

The company is now looking for the $500,000 plus interest, legal costs and any relief the court deems just.

Known as the Fortis Canada Games Complex, the $34-million facility is home to a 400-metre, eight-lane track, FIFA quality soccer turf and an indoor training facility for the development of amateur level sport.

In May 2023, the city announced Lindsay Construction had been awarded the design build contract for construction of the new track and field, artificial soccer turf and training centre for the 2025 Canada Summer Games.

‘Suffered significant losses and damages,’ says company

Lindsay Construction claims the milestone relates to three parts: the track, the grass field in the centre of the track as well as the artificial soccer turf.

The company said the track and artificial soccer turf — which makes up 97.6 per cent of the milestone’s scope — were "substantially completed before Sept. 30, 2024. Lindsay received substantial completed certificates for the track and artificial turf on Sept. 26 and Sept. 26, 2024, respectively."

The company said it began installation for sod on the grass field on Sept. 16, 2024. About one-third was laid by Sept. 23, according to the company, and it was estimated to require another week to finish.

"Unfortunately, it rained for several days at the end of September 2024, preventing Lindsay from laying sod for the grass field," reads the statement of claim.

But Lindsay Construction said by Sept. 30, the necessary sod to finish the grass field was on site, but weather outside of their control prevented them from laying it down.

"Lindsay further states that despite design review delays and change orders requested by the city directly affecting the track and artificial soccer field, Lindsay still achieved the milestone. Lindsay states that these delays were caused solely by the city and not through any fault or cause by Lindsay."

Lindsay Construction is looking for the $500,000 plus interest, legal costs and any relief the court deems just in a dispute with the City of St. John's over whether it met set deadlines for project milestones. (Elizabeth Whitten/CBC)

It added the city-caused delays amounted to more than a week in time, and the city was aware of the delays.

"Lindsay states that it was those delays, combined with the impacts of weather, that meant the track, field, and turf were not 100 per cent complete by Sept. 30, 2024, through no fault of Lindsay," it reads.

Lindsay added over the course of almost two years, there have been attempts to negotiate but didn’t result in the company getting the financial boost and it has, as a result, "suffered significant losses and damages."

No statement of defence had been filed as of Thursday morning.

Both the city and the plaintiff’s lawyer, James MacNeil of BoyneClarke, declined to comment.

None of the claims have been proven in court.

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Elizabeth Whitten is a journalist with CBC News, based in St. John's.