A contractor removed from a long-delayed northern Ontario school project says it is taking the province to court, calling the decision to terminate its contract “unjustified” and “fundamentally unfair.”
Van Horne Construction Ltd., which was building the Parry Sound JK–12 school, said it is pursuing legal action after claims that Ontario’s Minister of Education, Paul Calandra, directed the termination of its contract earlier this week.
“This decision is unjustified, unsupported by the facts, and fundamentally unfair,” the company said in a statement to Global News, arguing the province wrongly blamed the contractor for delays tied to governance and oversight failures by the Near North District School Board.
Van Horne said it “categorically rejects any suggestion that our work, conduct, or capability warranted termination,” adding that it met its contractual obligations and acted in good faith throughout the project.
The company said it repeatedly raised concerns about issues beyond its control, including permitting challenges, decision-making delays and structural problems in the project’s oversight and approval process.
They also stated that these problems were “well documented and predated any claims now being made about contractor performance.”
“Multiple independent reviews and public reporting have established that this project suffered from serious administrative and governance failures at the Board level,” the statement said.
“Against that backdrop, the Province’s decision to single out the contractor is inaccurate and misrepresents the root causes of delay and dysfunction on this project.”
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Van Horne said construction was “substantially complete” by the end of 2025 and had received the regulatory approvals needed to move toward occupancy.
The company also said it has not been paid by the board since September.
Global News reached out to the Province of Ontario for comment in regard to the lawsuit but did not hear back in time for publishing.
The company warned that removing it at this stage could further delay students’ return to classrooms and disrupt families in the Parry Sound community.
Parry Sound High School students were told one week before the start of school that they would begin the school year virtually, as the partially-demolished building wasn’t fit for occupancy.
They were eventually told they could return to school in person on Sept. 15, which has not yet happened.
“The termination of Van Horne at this late stage risks further delay in student occupancy and return to the classroom,” the statement said.
Van Horne said it will pursue legal remedies “to protect the company’s reputation, its contractual rights, and the interests of its employees and partners.”
Legal counsel for the company confirmed that litigation is now underway.
“As legal proceedings are being initiated, Van Horne Construction will not be providing further comment beyond the attached statement at this time,” said Leonard Finegold, senior counsel at Cambridge LLP and chair of the firm’s construction law group.
The province announced Jan 14th that the Near North District School Board had terminated its contract with Van Horne following what Education Minister Paul Calandra described as an “extensive period of review and engagement.”
They stated that the review included notices of default and opportunities for the contractor to address concerns.
The board was placed under provincial supervision in December 2025 after the ministry cited governance failures and incompetence that it said were affecting student achievement.
“After careful consideration, NNDSB has determined that continuing under the existing arrangement would place the project’s successful completion and timeline at risk,” Calandra wrote in a letter posted to the board’s website.
The board has said it plans to secure a new general contractor and is targeting a September 2026 opening for the school.
Van Horne said it shares the community’s frustration and wants to see the project completed but said accountability and fairness matters.
“We will not allow more than five decades of trusted public service and construction excellence to be undermined by a decision that fails to reflect the full and accurate record of this project,” the company said.
For now, students’ complete schoolwork remotely until the building is completed.
— with files from Global News’ Aaron D’Andrea
© 2026 Global News, a division of Corus Entertainment Inc.
