17-06-2025
City of Montreal ordered to pay over $23.3K to company after refusing to pay for its services over blacklisting
The City of Montreal is being made to pay a snow clearing company over $23,300 for refusing to pay for services after realizing the business was blacklisted from public contracts.
Excavation Anjou Inc., which expanded beyond snow clearing, was hired to clean sidewalks in April and May 2018. But, in 2016, the Bureau de l'inspecteur général de la Ville (BIG) et de l'Autorité des marchés financiers (AMF) decided the company could not be contracted by the city for five years.
The company was accused of engaging in collusive practices during calls for tenders.
Despite saying it was satisfied with the spring cleaning services, Montreal refused to pay Excavation Anjou, arguing the company should have known it was blacklisted from contracts and turned down the city's offer.
According to June 11 court documents reviewed by CTV News, Excavation Anjou owner and president Yvan Dubé was visited by two BIG inspectors in February 2018, asking him about services and rates.
Dubé said he was surprised by the visit considering the BIG's previous decisions, but an inspector told him that his cooperation could help him get city contracts again.
A few weeks later, Marc Dussault, an employee for the Hochelaga-Maisonneuve borough, requested Dubé's company wash the borough's sidewalks. Because the contract was under $25,000, no calls for tenders were necessary.
However, Dussault only had the authority to approve expenses up to $10,000 and had to get approval from higher-ups, which he did.
According to the court document, Dussault did not think to check whether Excavation Anjou was eligible to work for the city, and Dubé did not mention it as he felt reassured by the BIG inspectors' visit.
The contract was approved, and the work was done over 21 days for a total of $23,385.95.
Once the invoice was sent to the city's accounts payable department, Dussault was informed it would not be possible to pay the company because it was blacklisted.
Judge Catherine Pilon ruled that Excavation Anjou did not act in bad faith and that if there was negligence, it was on the city's end. Dubé is therefore entitled to payment of the entire invoice plus interest and additional compensation.
'The Tribunal found evidence that this error was repeated several times within the City. Mr. Dussault's director, who approved the awarding of the work, also failed to verify Excavation Anjou's status,' Pilon wrote in her decision.
'Furthermore, when the work began, the City issued 21 requests for payment for rolling stock without anyone raising any issues. This lack of a verification system and this series of errors amount to negligence for which Excavation Anjou should not be held responsible.'
