A difficult issue that may arise between contractors and subcontractors is the nature of their contractual relationship. Are they: independent contractors; or partners; or joint venturers; or employees one of the other?
In WCI Waste Conversion Inc. v. ADI International Inc., the Prince Edward Island Court of Appeal recently considered whether a contractor and subcontractor were actually in a joint venture relationship. The decision is an important one as the majority and minority of the court approached the issue in a different way.
The Court also considered questions relating to the obligations of good faith, fiduciary duty and repudiation on a construction project. The decision provides a useful insight into those issues as they apply to a construction project.
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