HomeMy WebLinkAboutBy-law 1657/83THE CORPORATION OF THE TOWN OF PICKERING
BY-LAW NO.1657/83
Being a by-law to authorize the execution
of an Indemnification Agreement between
Heldor Development Corporation, John
Anagnostou and Joseph Cornacchia and the
Corporation of the Town of Picketing
respecting Supreme Court of Ontario (York)
Action No. 600/83
WHEREAS Ferpac Paving Inc. has commenced Supreme Court of Ontario (York) Action
No. 600/83 against Heldor Development Corporation, John Anagnostou, the Corporation
of the Town of Pickering and Joseph Cornacchia respecting the cost of construction of
services in Plan of Subdivision M-1210; and
WHEREAS Heldor Development Corporation, John Anagnostou and Joseph Cornacchia
have agreed to indemnify and save harmless the Town from any liability incurred by
it as a result of or arising out of that Action and any costs occasioned by it in
defending that Action;
NOW THEREFORE, the Council of the Corporation of the Town of Picketing HEREBY
ENACTS AS FOLLOWS:
The Mayor and Clerk are hereby authorized to execute an Indemnification
Agreement, in the form attached hereto as Schedule "A", between Heldor
Development Corporation, John Anagnostou and Joseph Cornacchia and the
Corporation of the Town of Picketing, respecting Supreme Court of Ontario
(York) Action No. 600/83.
BY-LAW read a first, second and third time and finally passed this
April, 1983.
18th day of
TOWN OF
PICKERING
APPROVED
LEGit D~.
SCHEDULE A to By-law 1657/83
THIS AGREEMENT made this 30th day of March, 1983.
B E T W E
E N :
HELDOR DEVELOPMENT CORPORATION,
JOHN ANAGNOSTOU and JOSEPH CORNACCHIA,
hereinafter
collectively called
THE CORPORATION OF
hereinafter called
-and-
"HELDOR"
OF THE FIRST PART;
THE TOWN OF PICKERING
"PICKERING"
OF THE SECOND PART;
WHEREAS Ferpac Paving Inc. has commenced an action in the Supreme
Court of Ontario against Heldor Development Corporation, John
Anagnostou, the Corporation of the Town of Pickering and Joseph
Cornacchia claiming, inter alia, damages for breach of trust in
the sum of $89,398.32.
AND WHEREAS pursuant to an Order of the Honourable Mr. Justice
Eberle dated the 22nd day of March, 1983 Heldor Development
Corporation has paid the sum of $94,398.32 into Court to the
credit of that action, to abide the outcome of the action, on
behalf of the Defendant the Corporation of the Town of Pickering.
AND WHEREAS it was ordered by the Honourable Mr. Justice Eberle
that upon payment of the said amount into Court the action
against the Corporation of the Town of Pickering be stayed.
AND WHEREAS the Plaintiff Ferpac Paving Inc. has applied for
Leave to appeal the said Order.
AND WHEREAS in consideration of Pickering permitting Heldor
Development Corporation to proceed with its construction on phase
two of its Forest Gl'eh Subdivision:
NOW THEREFORE, Heldor hereby undertakes and agrees as follows:
1. Heldor shall indemnify and save harmless Picketing
against any liability incurred by it as a result or arising out
of the action commenced by Ferpac Paving Inc.
2. In the event that the Order of the Honourable Mr.
Justice Eberle is overturned and the money presently standing in
Court is ordered to be paid out, Heldor shall consent to the said
funds being paid to the solicitors for the Town of Pickertng,
Walker, Wright & Rowsell in trust, to be held by them, pending
disposition of the said action, the said money to be invested in
an interest bearing guaranteed investments certificate, said
interest to be held in trust along with the principal balance
pending disposition of the said action.
3. Heldor shall provide Pickering with an irrevocable
letter of credit in the sum of $20,000.00 as security for any
costs that maybe incurred by Pickering in defending the said
action. The said letter of credit shall be returned subject to
deduction of Pickering's legal costs, if the Appeal of the Order
of the Honourable Mr. Justice Eberle is dismissed and no further
Appeal is taken.
Heldor agrees that this agreement shall be binding on
Heldor Development Corporation, John Anagnostou and Joseph
Cornacchia and each shall be jointly and severally liable for
each of the covenants contained herein.
IN WITNESS THEREOF the parties hereto have executed this
agreement.
SIGNED,
in
SEALED AND DELIVERED
the presence of
)
)
) HELDOR DEVELOPMENT CORPORATION
) Per:
)~/CC~I~)))) JOHNj~s~pHANAGNOc
)
) THE CORPORATION OF THE TOWN
) OF PICKERING
) Per:
)
)