Court of Appeal Upheld the Arbitration Awards in Favour of the City of Brockville

Brockville – In 2019, the City of Brockville was successful in an arbitration with Tall Ships Landing Developments Inc. (“Tall Ships”).

An appeal of the arbitration award was argued before the Ontario Court of Appeal in 2022. On December 13, 2022, the Court of Appeal upheld the arbitration awards in favour of the City. The Court of Appeal’s decision upholds arbitration awards rendered in favour of the City with respect to the development of waterfront property on the St. Lawrence River, including a mixed residential/commercial condominium tower and the Maritime Discovery Centre. As part of the arbitration awards, the arbitrator found that Tall Ships “actively misled” the MDC Steering Committee about the construction costs of the Maritime Discovery Centre.

As a result of the Court of Appeal’s decision, the City will:

• Avoid paying additional construction costs alleged by Tall Ships of approximately $2 million;
• Avoid paying approximately $800,000 in claimed brownfield tax credits;
• Avoid taxes paid on unfinished condo units of several hundred thousand dollars; and,
• Not be required to enter a long-term lease with respect to operations at the Ernie Fox Quay (and another leased water lot).

In total, the City has been awarded legal costs of approximately $385,000 with respect to the arbitration and court proceedings.

Tall Ships sought leave to appeal the decision of the Ontario Court of Appeal, to the Supreme Court of Canada.

On January 11, 2024, the Supreme Court of Canada denied Tall Ships’ application for leave to appeal. The decision of the Ontario Court of Appeal (and the arbitration awards) are now final and binding.