A Saguenay company in dispute against Hydro-Québec

In July 2021. Furthermore, Hydro-Québec (HQ) launched a market call for the environmental rehabilitation of the sites of the old oil depot of Lake Pau, the former Ka-5 cement plant and the former Bowen entrepreneur area, Duplanting sector, in the territory of the Caniapiscau MRC. Therefore,

This project consists in excavating. Furthermore, putting the floors in the ends of validation of their environmental quality, in treating contaminated soils to make them compliant with the environmental criteria applicable and to backfill them once their decontamination has been completed, on each of the three sites. Furthermore, The deadlines for carrying out these works are approximately four years.

In September 2021. Similarly, earthworks Saint-Louis (TSL), a Saguenay company which worked in the sectors of civil engineering, transport and in the collection of recyclable materials, files a submission. Similarly, saguenay company dispute against hydro-québec Hydro-Québec attributes the contract to the Saguenée company for a price of $ 4,989,372.63. Consequently, The latter will have to provide labor, materials, equipment and services to carry out rehabilitation work.

Unpaid sums. Consequently, forest fires

The contract between the two parties saguenay company dispute against hydro-québec provides that the work of TSL is remunerated in particular according to variable indirect costs and fixed indirect costs. For example, For variable indirect costs. Meanwhile, TLS is paid in proportion to the progress of the work carried out at the periodic count. Moreover, As for fixed indirect costs, payment is made by the week.

Payments were expected to start when TSL is starting work on the site. Moreover, at the rate of 16 theoretical weeks per year over a period of June 1, 2022 to October 31, 2024 inclusive.

For the first. Meanwhile, second year of the project, TLS is carrying out the work according to the rules of the art and in accordance with the requirements of the contract. Furthermore, Hydro-Québec has indeed paid the sums due to TLS for the first year. even if the entrepreneur worked less than 16 weeks.

On the other hand. HQ refused to pay the fixed indirect costs for the second year of service (summer 2023), which amounted to $ 187,604.71, pretending to be a cut of seven weeks. The company mobilized on the site only nine weeks out of the 16 planned. but it was HQ which prohibited it from access to the site as a safety measure, due to major forest fires which raged in the MRC of Caniapiscau.

A formal notice is then sent from TLS lawyers in Hydro-Québec. Special clauses appear. however, to the contract and provide that, to guarantee the execution of TSL’s obligations, HQ makes a reservoir of 2.5 % of the deposits of the contractual price it pays to TSL.

A second clause provides that. at the request of TSL, HQ reimburses the warranty deduction annually and the special deductions, if applicable, reduced by all the sums that TSL may have to HQ. Thus, TLS requests that HQ be ordered to pay him the sum of $ 43,272.38, as a contractual deduction of year 2 of his contract, in addition to the $ 187,604.71 of fixed indirect costs.

Saguenay company dispute against hydro-québec

Broken vehicles

As part of the contract which binds it to Hydro-Québec. the entrepreneur has the duty saguenay company dispute against hydro-québec to provide two type vehicles pick-up for the duration of field work. These vehicles were to be used exclusively by HQ representatives during mobilizations. demobilizations at the site, from the place of business of the latter located in Quebec and the work site or in the sector.

But during the summer of 2023, said vehicles undergoing significant breakage. TSL advances abnormal and unreasonable conditions of use.

For one, the breakages touch the transmission oil cooling duct and several suspension parts “[…] Due to the fact that the vehicle would have been driven outside the carriageways. at an abnormally high speed given the state of the forest roads of the site, “we can read in a first judgment rendered by judge Nicole Tremblay, of the Superior Court of Chicoutimi.

HQ representatives would also have made a “reckless. inappropriate” perspective with the second vehicle loaned, hitting a third TLS vehicle that was there. Significant damage to the body is found on the two vehicles and lateral mirrors have been broken.

According to the judgment. TLS vehicles were not used in the terms indicated in the contract, “[…] Especially for the purposes of personal recreation activities of fishing and travel at Laforge airport, which is located more than a hundred and fifty kilometers from the work sector ”.

The representatives of HQ are recalled to order several times during site meetings so that they “adapt their saguenay company dispute against hydro-québec conduct to the particular forest conditions. that they reduce their speed and remain in the carrosable paths with the vehicles.”

Hydro-Québec nevertheless refused to compensate TSL for damage caused on his vehicles. claiming that it was the entrepreneur who was responsible for their interview. Damage amount to $ 22,250.93.

“However. HQ must be held liable for unreasonable use, neglect and exceeding the contractual framework that its representatives have made with TSL vehicles so that the resulting brokenness fall under its responsibility,” said the Honorable Nicole Tremblay in his judgment rendered on September 23, 2024.

Saguenay company dispute against hydro-québec

Dispute arbitration

The general clauses of the contract between the two parties provide that they must submit any disagreement. dispute or complaint to arbitration. The question is in which district the dispute should be decided, that of Chicoutimi, or that of Montreal. saguenay company dispute against hydro-québec

Hydro-Québec argues that arbitration should be done in the court of Montreal. where its registered office is located and where the contract has been concluded, and therefore asked for the refereeing of the dispute in the Montreal District.

Given that the order form. considered as a contract, was sent to the TLS office in Saguenay, and a private arbitration before three Montreal referees saguenay company dispute against hydro-québec would disintegrate the company, judge Nicole Tremblay estimated that the Chicoutimi district had jurisdiction to settle the dispute.

“Impose on TSL a private arbitration before three arbitrators for which it will have to assume half of the fees. costs, the disadvantage to a point where it would be better to withdraw from its submitted request. […] In the context of a membership contract. this clause imposing arbitration distorts the contract and disadvantages the member TSL in an excessive and unreasonable manner, “she said, rejecting the referral to the arbitration requested by HQ.

But the cause was brought before judge Simon Ruel of the Quebec Court of Appeal by HQ. The latter agreed with Hydro-Québec and concluded that the file should be worn in the Montreal District. He maintains that TSL will always be able to assert its rights before the Montreal Superior Court. that a virtual saguenay company dispute against hydro-québec audience could certainly be held to facilitate its access to justice.