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Interlocutory Decisions : 2001

2001-04-30

LET-R-214-2001

File No. R 8050/372-S08.17

Reference is made to Trillium Railway Company Limited's solicitors (Trillium) correspondences dated December 27, 2000 and March 5, 2001 and to the City of Welland (the City) response dated March 20, 2001 with respect to the enforcement of Canadian Transportation Agency Order No. 2000-AGR-42.

On January 17, 2000, the Canadian National Railway Company (CN) filed with the Agency an executed agreement entered into by CN, 1276343 Ontario Limited and the Corporation of the City of Welland with respect to the construction and maintenance of a proposed railway work. Upon filing of this agreement with the Agency pursuant to subsection 101(1) and 101(2) of the Canada Transportation Act (CTA), the agreement became Order No. 2000-AGR-42 of the Agency.

Reference is made to clause 7 and 8 of the "Standard Crossing Agreement" and certain clauses in Appendix II, in which the parties agreed on how the proposed "railway work" will be carried out. The Agency notes that, in the case of a dispute relating to the wording and interpretation of these clauses in the agreement, the parties have agreed to resolve their issues in accordance with the Arbitration Act of the Province of Ontario. Further, if either party fails at any time to fulfill their obligations as provided in the Agreement, the other party, at its option, may upon reasonable notice, undertake the necessary measures to ensure safety, at the risk and expense of the defaulting party.

It is the Agency's position that where basic enforcement provisions are provided in an agreement, disputes should be resolved in accordance with the terms of the Agreement. The parties should therefore govern themselves accordingly.

The Agency, however, is willing to assist the parties in resolving their disputes prior to the use of formal procedures and, as such, offers mediation services which the parties may wish to consider in this respect. Enclosed for your guidance is a brochure entitled: Resolving Disputes Through Mediation as well as a Request for Mediation form. In addition, Agency staff may be available to assist in other ways, such as through facilitation of improved communications between parties or the review and clarification of issues.