Law Times

June 9, 2008

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LAW TIMES / JUNE 9, 2008 FOCUS PAGE 11 Process intended to be quicker and cost-effective Continued from page 9 requirements for high-quality reasons for decision," he says. Glaholt says he is a strong proponent of a radical reform to the national construction law economy, namely the adoption of a made-in-Canada form of statutory adjudication, using the U.K. model as a basis. A leading U.K. provider of adjudication services — adjudi- cation.co.uk — says that adju- dication is a statutory procedure where any party to a construction contract has a right to have a dis- pute that arises within that con- tract decided by an adjudicator. The process is "intended to be quicker and more cost- effective than litigation or ar- bitration," is normally used to ensure payment, and the deci- sion is binding and "usually upheld by the courts." The U.K. Construction Indus- courts, both in terms of speed of decision and administration of the pretrial process," he says. It would help the ADR process, he says, if recourse to the judicial system in construction cases was easier, more reliable, and speedier, as it would give everyone a new best alternative in their negotiations. Naftolin notes that, while adju- dication is an interesting concept and has been discussed at various conferences in Canada, he does not know whether anyone has put it into practice in this country. Ken Movat, a construction lawyer with Gowling Lafleur Henderson LLP in Toronto, says that he has yet to see any real ini- tiative moving forward in Canada in the area of adjudication, but it would be something that would be potentially of interest to people in the construction business to add to what they already know of in terms of traditional ADR and litigation, he says. He adds that he has not seen it referred to in any construc- tion contract in use in Canada, and the adjudication process is something different than seen in the standard Canadian con- struction contract in terms of it not just being voluntary. "If we were to do something like that in Canada, it would require legislation," he says. Movat, who notes he is not nec- essarily an advocate for it one way or the other, says that one issue to consider may be that as the con- struction industry becomes more globalized in Canada, and more developers arrive from the U.K., they may bring adjudication with them and want to put this into contracts without legislation. LT The Ontario Municipal Service Directory: A Comprehensive Guide for Real Estate Professionals, 2008 With Introduction and Historical Linkages by Michael L. Young, LL.B. try Council's users' guide to adju- dication says that either party may seek an adjudication, and it can be used at any time. Adjudicators are required to make a decision on the dispute within 28 days. "We need to bring unifor- mity to payment and perfor- mance claims resolution across Canada and this would be something that would really benefit the Canadian construc- tion economy," says Glaholt. "As part and parcel of that, we need to strengthen our special- ist judiciary and improve access of the construction industry to Redesigned for 2008, this handy resource helps you process your real estate transactions more efficiently, saving you time and energy. Now published annually, this fifth edition of The Ontario Municipal Service Directory gives you up-to-date and easily accessible municipal contact information. 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