Loading...
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: ) )