June 6, 2023
There have been mixed reviews since Ontario became the first province to implement a prompt-payment construction adjudication system for disputes in the construction industry in July 2019.
Lexpert has written a piece that canvasses the legal industry’s reaction to the process after its first few years in operation. The article reads, “[p]rompt-payment adjudication produces an interim, binding decision, which can be set aside later through arbitration or a court proceeding.”
The article says there have been mixed reviews on the process, with critics citing the speed with which it moves being too fast to fully develop a position, particularly those on the receiving end of a unfavourable decision.
Torys litigator David Outerbridge told Lexpert there “aren’t a lot of pros for a respondent”, who have limited amount time to put a case together who and rush to assemble relevant material if there is a technical component or a complicated factual component.
“The whole system is designed for claimants—for the little guys, for the subcontractors, suppliers, and unrepresented parties who don't have a lot of money and sophistication and want to be able to get a result quickly,” David said.
“For that purpose, it's well designed. But for complicated projects, or for respondents, it's not particularly optimal.”
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