The High Court has dismissed a $24 million claim brought by Mainway Industrial Installation Ltd against State-owned Estate Management and Business Development Company Ltd (EMBD), ruling that the company waited too long to pursue the alleged outstanding payments.
In a decision dated October 30, Justice Sherlanne Pierre found that the claim was filed outside the four-year limitation period prescribed by law. Mainway was seeking $9.4 million for construction work carried out under two contracts, along with approximately $14.6 million in interest and finance charges. The dispute relates to the La Romaine Residential Development Project, contracted in 2008, and the Utility Corridor Project, contracted in 2010.
EMBD engaged Mainway to carry out the construction works under both agreements.
Mainway maintained that it was owed money for work completed under the contracts but did not receive payment for four outstanding payment requests submitted through Planviron Ltd, the engineering company appointed by EMBD to oversee the projects.
Under the contractual arrangements, Planviron was responsible for assessing Mainway’s work and issuing interim payment certificates to EMBD.
The certificates were also supposed to be copied to Mainway.
However, Mainway said it did not receive copies of the relevant certificates until November 2023, despite the certificates having been issued in 2015.
The company argued that it could not properly pursue payment without first receiving the certificates. It also contended that EMBD’s failure to disclose that the certificates had been issued amounted to the deliberate concealment of information relevant to its claim. But Justice Pierre rejected that argument, finding that Mainway had opportunities to make further inquiries years earlier.
The judge noted that Mainway had written to EMBD five times between 2018 and 2019 demanding payment and interest. However, the company did not specifically raise the failure to receive copies of the payment certificates.
The court also noted that Mainway had previously sought disclosure of the certificates in legal proceedings initiated in 2019, but those proceedings were dismissed after the claim form expired before it was served on EMBD.
Justice Pierre found that Mainway had been put on notice to investigate the matter long before receiving the certificates in 2023. The company had not demonstrated that anything prevented it from making those inquiries earlier.
