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City Council considers suing Travelers Insurance for wrongfully denying bond claim in Baycrest Park construction dispute
The City is asking Council to authorize litigation against Travelers Insurance Company of Canada over the insurer's denial of a performance bond claim related to the Baycrest Park Revitalization Phase 1 project. After terminating the original contractor Loc-Pave Construction Limited in June 2024, the City submitted a claim to Travelers, which was denied; the City alleges it incurred significant additional costs for retendering and interim work, plus extended closure of the park. Legal advice from the City Solicitor is contained in a confidential attachment.
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• The City's bond claim was denied by Travelers Insurance, forcing the City to absorb costs of retendering the project and interim work, plus loss of public use of Baycrest Park during the extended construction period
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