Toronto Battles Builders Over St. Lawrence Market’s $8.3M Claim

The City of Toronto is engaged in a legal dispute with the builders of the St. Lawrence Market’s new north building, countering their claim with a lawsuit of its own for $8.3 million. The ongoing litigation, stemming from the construction project that experienced significant delays and cost overruns, will be discussed during a meeting of the city’s general government committee on Monday.

The new structure, characterized by its modern glass design, was constructed by a joint venture known as BAJV, which includes Atlas Corp. and Buttcon Limited. BAJV is pursuing a claim amounting to $81.5 million for additional costs incurred during the project. The city’s counterclaim arises from allegations that delays were caused by the actions or inactions of BAJV, as well as external factors beyond the city’s control.

Legal Proceedings and Allegations

Toronto’s statement of defense and countersuit, filed in November 2025, asserts that BAJV failed to adhere to the construction schedule outlined in June 2019. This led to significant setbacks, prompting the city to hire its own scheduling expert to help rectify the situation. The document claims that BAJV had issues with subcontractors, notably terminating the contract with a structural steel group in August 2022 after they fell nine months behind schedule.

The city is pursuing compensation for each day of delay, amounting to $1,500 per day. Additionally, they have incurred costs related to operating the St. Lawrence Weekend Farmers Market and antique market on the Esplanade for three years longer than planned. The new building was largely completed by November 30, 2024, approximately three years behind schedule. Following this milestone, BAJV and various subcontractors initiated legal actions to recover additional costs linked to the delays.

Project Timeline and Financial Impact

Demolition of the previous north building began in 2016, with construction of the new facility starting in 2019. The project, which had already faced delays from its inception, was initially expected to take two and a half years. The City Council first approved the construction of a new building in 2002, indicating a prolonged timeline filled with challenges.

As the project progressed, several factors contributed to escalating costs. A report from the city’s chief financial officer highlighted “errors and omissions from the prime architect,” alongside difficulties related to the COVID-19 pandemic, new workplace standards, and evolving technological needs for the provincial courts relocating to the market from Old City Hall. In July 2024, City Council authorized an additional $40,000 to Adamson Associates Architects, the firm responsible for the design and contract administration, to address these issues.

The financial implications have been substantial, with the total project cost ballooning from an initial budget of $91.5 million in February 2018 to approximately $128 million by 2024. The city’s budget was under pressure even before the project’s completion, with prior increases in 2018, 2019, and 2021.

Ultimately, the St. Lawrence Market complex, which has been a historical site in Toronto for over 200 years, is significant not only for its architectural value but also for its economic and cultural contributions to the city. The ongoing legal battle reflects the complexities inherent in large-scale public construction projects and the financial risks involved.

As the general government committee prepares to discuss the latest developments, the outcome of this dispute may impact both the city’s budget and the future of the St. Lawrence Market, which remains a vital gathering place for residents and visitors alike.