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City Notified Superior Court Will Not Stay Main Action by Horizon

January 18, 2011 – City of Thunder Bay Legal Counsel received notification this afternoon that the Superior Court will not stay, or put on hold, Horizon’s action for breach of contract pending resolution by an arbitrator.

Superior Court Justice Whitaker ruled the arbitration clause applies only to disputes under the Lease and not disputes under the Option Agreement, which is the subject matter of Horizon’s dispute before the Court.

City Manager Tim Commisso responds as follows:

"We are disappointed with the outcome of this preliminary procedural motion as our view is that a favourable decision would have allowed the matter to be dealt with more efficiently and quickly, which is a benefit to both parties.

We are preparing for the next steps and will be reporting to Council on Monday. This is a serious legal matter and our position has not changed. The City has been responsible and fair and the City will continue to defend itself vigorously.”

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Contact:  Tim Commisso, City Manager, 625-2224