City of Toronto countersues contractors who want $83M for St. Lawrence Market project

After Toronto was hit with an $83-million lawsuit from two companies who worked on the new St. Lawrence Market North Building last spring, the city is alleging it’s the contractors who should pay the city at least $8 million. 

The joint venture of Atlas Corporation and Buttcon Ltd. was awarded a $92-million contract to build the five-storey glass and metal building in 2019. The project was in the works for years and replaced the old north market building that was demolished in 2016.

But after delivering equipment, labour, materials and other services to complete the project, the contractors alleged they’re still owed about $83 million for their work, according to a statement of claim filed in March 2025 at the Ontario Superior Court of Justice. The contractors alleged the city breached its contract by not paying.

In its statement of defence filed in November, the city said it owes no debt to the companies, referred to as BAJV in the documents. None of the allegations made by either side have been proven in court.

The city says the requested amounts are “expressly denied, are exaggerated, excessive and remote…and are, in whole or in part, the result of the actions or omissions of BAJV or persons other than the City.”

 The city’s general government committee will be having a confidential discussion on the lawsuit next Monday.

The contractors are also seeking at least $8.9 million for additional labour and materials costs tied to delays they say are caused by the city or parties it’s legally responsible for. 

In its statement of defence, the city says the work was completed nearly three years behind schedule and the delays were caused either by actions and inactions of BAJV or forces outside of the city’s control. 

In its counterclaim, the city wants at least $8.3 million for delay damages and “outstanding deficiencies” from the contractors. 

“It is evident that BAJV failed to properly supervise, manage and perform the work so as to conform with the contract time,” the statement of defence said. 

The statement of defence lays out a number of reasons for its claim that BAJV caused the delays, saying their construction plan included “inconsistent and faulty logic” and “clashed” with subcontractors working on the project. The statement does elaborate on what is meant by "faulty logic."

The city alleges it had to retain a “scheduling expert” to give BAJV advice on how to improve its planning practices. While the project was delayed, the city says its Saturday farmers market and Sunday antiques market had to be housed in a temporary location for three years longer than anticipated, causing increased costs and lost revenue. 

The lawyer representing BAJV in the lawsuit did not reply to CBC Toronto's request for comment.

The fact that the city had to bring in a scheduling consultant could complicate things for the plaintiffs, says Jiwan Thapar, CEO of JTE Claims Consultants, a consulting firm specializing in construction claims and dispute resolution.