The multimillion-dollar lawsuit surrounding BC Place Stadium's retractable roof has been settled out of court.
The British Columbia Supreme Court trial between the company hired to supply and install structural steel and the roof support cable subcontractor began February 17 with French cable installer Freyssinet's opening statements. A planned tour of the stadium for the benefit of presiding judge Gregory Bowden on February 19 was postponed. A document filed February 20 in court said Freyssinet sought an adjournment to March 17 to continue the trial, which was scheduled for 105 days. The lawyer for the French-based company told Business in Vancouver that he expects the trial will be adjourned generally.
"The parties have reached a settlement agreement and are finalizing the details," Douglas Lahay of Clark Wilson told BIV on Feb. 26. "The terms are confidential."
General contractor PCL Constructors Westcoast hired Canam on a $122.8 million contract for structural steel. Quebec-based Canam subcontracted the cable work to Freyssinet for $30.1 million.
The stadium reopened on time September 30, 2011, albeit with rainwater leaks from the roof. A month later, Freyssinet sued Canam for a debt owing. In court on February 17, Lahay said Freyssinet invoiced Canam for $38.47 million but was owed $6.8 million.
Canam's counterclaim was for $40.5 million in cost overruns. It alleged Freyssinet was negligent and breached its contract. The Canam filings blamed Freyssinet for equipment and materials failures and disagreements on construction methods that delayed the application of the roof.
Freyssinet also supplied and installed cables, the damper systems, expansion joints and bearings to the new Port Mann Bridge. Another subsidiary of parent Soletanche Freyssinet, ReCo Canada, designed and supplied retaining walls and bridge abutments on the Highway 1 project.
Freyssinet's Canadian operations manager Franck Chavent did not immediately respond for comment.
Canam CEO Marc Dutil, in a February 26 conference call about fourth quarter results, said both the cost overruns and the grease leaks matters were settled. Grease that leaked from the cables, which were manufactured by Geobrugg AG of Switzerland, did an estimated $20 million in damage by staining the fabric roof.
"We feel there are no winners in these settlements, we're just glad we can move on to more constructive issues," said Dutil, who expected the settlement would not impact first quarter results. He said the terms would remain confidential.
Canam (TSX:CAM) reported a $31.2 million profit for 2013 and has $191 million in new contracts, including the new Rogers Place hockey arena in Edmonton and a retractable roof for the Arthur Ashe tennis stadium at Flushing Meadow, N.Y.
The budget for the stadium renovation went from $365 million in January 2009 to $563 million in October 2009. In August 2012, the government said the final cost was $514 million. The NDP complained to the Office of the Auditor General in January 2013.
