Executive Summary: Key Legal and Evidentiary Issues

• Sufficiency of evidence that Martech fulfilled both signage orders as contracted.

• Dispute regarding entitlement to delivery/transport fees included in Martech’s invoices.

• Lack of substantiation for De Sousa’s claims of delays, signage errors, and penalties from the City of Laval.

• Determination of the date from which interest on unpaid invoices should accrue.

• Adequacy of documentation and notice provided to De Sousa in the demand letter.

• Assessment of the credibility and relevance of witness testimony and documentary exhibits from both parties.

Background and facts of the case
Martech Signalisation inc. manufactures panels and signs used for road traffic organization. 4042007 Canada inc., f.a.s.n. De Sousa, is a civil engineering company specializing in the construction or redevelopment of roads and streets. In October 2022, De Sousa ordered signage panels from Martech for a contract with the City of Laval, with delivery in November 2022. A second order was placed in December 2022, with delivery a few days later. Martech issued a first invoice dated October 31, 2022, for $28,456.89 (including $295 in transport fees), a second invoice dated December 6, 2022, for $518.54, and a third invoice dated December 8, 2022, for $37.37 in transport fees. Despite exchanges, a formal demand, and additional communications, De Sousa did not pay any of the invoices.

Martech claimed it had provided the required services and denied De Sousa’s allegations of contractual shortcomings. De Sousa argued that interest should only accrue from the date of service of the demand letter on November 15, 2023, because the invoices were not attached. De Sousa also mentioned delays and errors in the panels, claiming to have paid penalties to the City of Laval, but did not file a counterclaim or present supporting evidence. De Sousa further asserted that its employees collected both orders from Martech and that no delivery fees were payable.

Legal analysis and issues
The Tribunal found that Martech had demonstrated fulfillment of both orders and was entitled to payment for the panels. The court noted that De Sousa’s claims regarding errors and penalties were unsupported by evidence. The Tribunal determined that Martech had not proven its entitlement to the delivery/transport fees. The court also found that De Sousa had all necessary documentation to assess the amounts claimed in the demand letter and ruled that interest should accrue from November 25, 2023, the expiry of the ten-day period following the demand letter served on November 15, 2023.

Outcome and monetary award
The Tribunal partially granted Martech’s claim, ordering 4042007 Canada inc., f.a.s.n. De Sousa, to pay Martech Signalisation inc. a principal amount of $24,906 (plus applicable taxes), with legal interest and the additional indemnity under article 1619 of the Civil Code of Québec, calculated from November 25, 2023. The judgment also awarded legal costs. Martech Signalisation inc. was the successful party, with the total monetary award consisting of the principal sum, applicable taxes, legal interest, the statutory indemnity, and court costs.