Who knew that Councillor Ron Jones was the new voice of council as it relates to border issues.
Here all along I thought it was Mayor Eddie Francis as councillors have reaffirmed many times through motions of council.
Mayor Francis has no choice but to reprimand Councillor Jones for violating a council motion.
Because Mayor Francis supports the Ambassador Bridge Company, but wants the company to “answer those questions and satisfy the same requirements as you and I would if we were building the bridge” (Windsor Star, June 16, 2009).
Contrast this with Councillor Jones’ statement in Saturday’s Star:
“We have two vulnerable communities that should be enhanced by a border crossing, not decimated by it.”
Jones told the crowd a twin span would “cut Sandwich Towne in half and we’re not going to allow it to happen.”
There’s a simple solution to that Councillor Jones – fix Huron Church to the foot of the Ambassador Bridge – you proved it could be done with Greenlink, why can’t the same apply to West Windsor?
But I suppose literally flattening a low-income community in Delray is the better alternative.
MDOT Lawsuit versus Arbitration
What I find sadly amusing (but completely predictable) is the apparent surprise the Ambassador Bridge Company is doing everything within their right to protect their investment.
And how quick certain columnists, politicians and bureaucrats are to ring the death knell on the company’s enhancement project.
But what caught my eye were both media reports of, and company president Dan Stamper’s claim the company has been seeking arbitration to resolve the outstanding issues with respect to the Gateway Project.
Dan Stamper said:
We are partners with MDOT in this important Project and we want to be good partners. Disputes over interpretation of diagrams or changes in detail are part of all large construction jobs. That’s the reason why our agreement has an arbitration clause…
This piqued my interest. What is an arbitration clause?
Well, in the US there are two pieces of legislation I found.
First, there is the Federal Arbitration Act and in the State of Michigan there is what is called the Michigan Arbitration Act (MCL 600.5001).
Basically, under both bills, an arbitration clause can be included within contracts between parties to resolve contract disputes through arbitration rather than through the courts.
According to USLaw.com, “the reason why arbitration is becoming so popular is that it is seen as generally being a faster, cheaper and less disruptive method for resolving business disputes than traditional litigation in the courts.”
Generally faster, cheaper and less disruptive.
Gotcha.
I have no idea if one or the other or both would apply in the case of the Ambassador Bridge and the Gateway Project; but what is clear is there is an arbitration clause in the contract between the Michigan Department of Transportation (MDOT) and the Detroit International Bridge Company with respect to their joint Gateway Project.
So why then would MDOT launch a lawsuit for “breach of contract” which is presumably slower, more expensive and more disruptive?
According to Detroit News (June 26, 2009):
On Wednesday, MDOT filed a lawsuit against the bridge company, accusing it of breach of contract for changing its portion of the Gateway Project, including the illegal seizure of city property as well as constructing a duty free shop, toll booths and fueling stations at the Ambassador Bridge.
Crains Detroit reported (June 25, 2009):
MDOT says the bridge company closed streets it shouldn’t have, hasn’t provided access to private property as it agreed to, hasn’t built roads and ramps it agreed to do, and MDOT wants the new duty-free store, gas station and toll booths removed from the plaza.
I’m not sure if the Windsor Star story from May 8, 2008 applies in whole or in part, but apparently, the Ambassador Bridge is immune from city ordinances:
The city of Detroit filed an injunction in 2001 after the bridge company built new toll booths and expanded its plaza, in part, on city property…
…The Supreme Court’s decision affirmed the initial decision, ruling that the bridge company is “immune from the (city) ordinance as a federal instrumentality.”
Perhaps MDOT officials were too busy building mountains on service drives (which according to Construction Today were designed to separate truck traffic from the I-75) to notice that a duty free shop, toll booth and fueling stations were constructed.
And according to MDOT engineer, Tony Kratofil (Detroit News, June 24, 2009):
“Because the bridge company deviated from the plan, the government could say we didn’t meet the requirements of the contract and withhold their funding. The project isn’t divided into an MDOT portion and an Ambassador Bridge portion; as far as the government is concerned, it’s all one project.
If that is accurate, than MDOT has failed to properly supervise the project.
I mean, thinking about this logically, if the company did indeed “deviate” from the plan, where was MDOT crying foul and seeking an order to halt the company’s alleged deviation when it happened?
I mean a duty free store and fueling stations just don’t pop up overnight or the alleged illegal seizure of city property.
But, I suspect this is nothing more than a stalling tactic on the part of MDOT – depending upon how the arbitration clause is worded.
Because 600.5011 of the Michigan Arbitration Act states:
Neither party shall have power to revoke any agreement or submission made as provided in this chapter without the consent of the other party; and if either party neglects to appear before the arbitrators after due notice, the arbitrators may nevertheless proceed to hear and determine the matter submitted to them upon the evidence produced by the other party. The court may order the parties to proceed with arbitration.
So take the Detroit International Bridge Company to court; and depending upon the wording of the arbitration clause, the court may order the parties to arbitration – something the Detroit International Bridge Company has been asking for from MDOT with no response.
But I guess MDOT needs an appropriate scape-goat should their federal funding be threatened for their poor oversight and enforcement of their own contract.
Gives me the shivers considering MP Brian Masse was demanding a public border authority to provide oversight of border crossings in Windsor.
Let the games begin.
And we haven’t even begun to consider what, if any legal action the company may or may not take on this side of the border.
Death knell for the company’s proposal?
Hardly.
More like the beginning of a prolonged legal dispute that could tie up both the DRIC and Ambassador Bridge projects in court for years.