Mystery company at heart of $53M potash mine lawsuit
HB Construction Company 'purchased' lawsuit after Comstock Canada became insolvent
Five years ago an unknown Alberta-registered company, HB Construction, picked up some land, vehicles and equipment following the collapse of another company, Comstock Canada Ltd. of Burlington, Ont.
Total cost: $4.5 million.
Thrown into the deal at no extra charge was ownership of a lawsuit Comstock had earlier launched against a couple of big players in Canada's corporate world: PotashCorp of Saskatchewan and AMEC Americas Inc.
The suit relates to disputes that arose between Comstock and those companies in 2009-2010 during construction of PotashCorp's now-closed mine in Penobsquis.
HB, which had nothing whatsoever to do with the mine project, decided to continue the lawsuit, which is now at trial in a Saint John courtroom.
If successful the company could see a $53 million payday.
- PotashCorp suit begins over construction problems at mine near Sussex
- Nutrien permanently closes New Brunswick potash facility
- PotashCorp suspends Picadilly mine in N.B., cuts 430 jobs
While the suit is being argued by a five-person legal team led by Bay Street lawyer Howard Wise, HB Construction Company itself is a mystery.
Asked about the HB purchase of the lawsuit, Wise said the details would come out in the trial.
Attempts by CBC News this week to reach the company were unsuccessful.
The Calgary corporate headquarters listed on 7th Avenue SW is home to a law firm.
The company left its quarters in Edmonton, at 2544 Ellwood Dr. SW, about five years ago, according to the commercial realtor now listing the suite.
Phone numbers in both cities are no longer active.
There was no response to messages left by email with company president Geoffrey Birbeck.
The company's legal team in Saint John also has not yet responded.
HB Construction was registered in November 2013 the same month it purchased the Comstock assets.
Its last annual return was filed in 2017. The 2018 return is listed by the Alberta Corporate Registry as outstanding.
The registry lists HB's parent as Williams Companies International Holdings B.V. in Amsterdam. A woman answering the phone there took CBC's contact information.
HB's lack of profile in Canada is a factor in the case.
"HB Construction is not a resident of New Brunswick and has no assets in the Province," states the pre-trial brief filed in the PotashCorp case by co-defendant AMEC.
"Its presence in Canada is uncertain. There was no evidence HB Construction had assets sufficient to pay any costs awarded against it."
Had to post bonds
The concern over whether HB is in a position to pay damages if it loses the case led Justice William Grant of the Court of Queen's Bench to order the company to post bonds of $2.8 million as security to cover defendant PotashCorp and/or AMEC's costs.
Comstock was hired during construction of the Picadilly potash mine in August 2009 to install equipment and instrumentation inside a large on-site building known as the "compaction plant."
The company was to be paid $36 million.
On July 21, 2010, Potashcorp terminated the contract. In its court brief, the company says it "lost confidence in Comstock's ability or intention to complete the project in a timely or cost-effective manner."
Suit has no effect on closed mine
In June 2013, at the time it made a filing under the Bankruptcy and Insolvency Act, Comstock was one of Canada's biggest construction companies, with well over 1,000 union and non-unionized workers.
It owed more than $75 million to creditors.
The case will have no bearing on the future of the Picadilly mine, which was closed permanently by PotashCorp, which has rebranded itself Nutrien.
Forty days have been set aside for the trial.
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