The City of Castlegar’s insurer has filed a notice of appeal in regards to a lawsuit the city recently lost to a construction company.
On May 25, a judge decided in favour of Maglio Installations Ltd. when the company brought a case against the City of Castlegar claiming that the city erred when it awarded the Millennium Ponds contract to Marwest Industries Ltd., despite the fact that Marwest’s proposal did not provide a required preliminary construction schedule.
“The defendant’s decision to accept Marwest’s bid in the face of its material non-compliance constituted a breach of the defendant’s contract with the plaintiff,” Hon. Mr. Justice Rogers wrote in his conclusion.
During the case, the city’s insurer, the Municipal Insurance Association of BC (MIA), used their lawyers to defend the city’s award decision.
On June 22, the MIA filed a notice of appeal with the Appeals Court of British Columbia.
“The MIA had the trial judge’s reasons for judgment reviewed by separate legal counsel and have determined that an appeal is warranted,” read a press release issued by the City of Castlegar on Wednesday, July 19.
Maglio Installations’ counsel responded with a notice of appearance on June 23, indicating that Maglio will participate in the appeal.
“Regardless of the outcome the City’s liability exposure remains limited to its insurance deductible which is $10,000,” the city’s release concluded.