Metrolinx should not be allowed to unilaterally terminate its $770-million light rail vehicle contract with Bombardier, a judge has ruled. Metrolinx’s claim that the company’s failure to deliver vehicles on time means it is in default will now be decided by a dispute-resolution board process laid out in the contract. Metrolinx said that the dispute-resolution process doesn’t apply to its right to terminate the deal for default. Doing so would “render the dispute-resolution process in the contract ineffective.”The judge agreed with Bombardier’s submissions that the company would suffer “irreparable harm” if Metrolinx were permitted to terminate the deal. He cited a letter that Bruce McCuaig, then-CEO of Metrolinx, wrote to Bombardier after serving the company with the notice of intention to terminate.

Source: thestar April 19, 2017 14:48 UTC