H2 CANMORE APARTMENTS LP v CORMODE & DICKSON CONSTRUCTION EDMONTON LTD, 2024 ABKB 428

MARION J

3.43: How to make claim against co-defendant
3.45: Form of third party claim
10.33: Court considerations in making costs award
13.4: Counting months and years

Case Summary

One of the Defendants, Cormode & Dickson Construction Edmonton Ltd. (“Cormode”), applied for permission to file a Third Party Claim against Cascade Mechanical Ltd. (“Cascade), a non-party, 21 months after the expiry of the 6-month deadline in Rule 3.45(c). The issue on the Application, which Cascade opposed, was whether the Court should extend the deadline to permit Cormode to file the Third Party Claim against Cascade. The Action, generally, was related to the construction of an apartment building in Canmore.

The Court began by noting that when Cormode initially filed its Statement of Defence in July 2021, it also filed a Notice of Claim Against Co-Defendants against fourteen other Defendants, pursuant to Rule 3.43. Justice Marion held that the Court did have discretion to extend the time period pursuant to Rule 13.5(2) and (3), and that the factors the Court must consider are the length of delay, the reason for the delay, and prejudice. This, however, is a non-exhaustive list. After providing a lengthy recitation of the case law, as well as a discussion of pertinent precedents, the Court dismissed Cormode’s Application, noting, among other things, that Cormode’s asserted explanation for its delay “does not stand up to scrutiny” and that Cormode knew a year before it filed its Statement of Defence “about the need to file a third party claim against Cascade.” The Court ordered that if the parties could not agree on Costs of the Application, they must provide written submissions addressing, in part, their position on the factors set out in Rule 10.33.

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