Gwich'in energy company in court over shareholder dispute
Former company president claims he was blocked from buying shares
The lawyer for the former president of a Gwich'in green energy company says a lawsuit filed by the Nihtat Corporation over the company's ownership is merely a delay tactic. The Nihtat Corporation argues that arbitration to resolve the dispute should not proceed and the court should intervene.
The company in dispute is Nihtat Energy, a subsidiary of the Nihtat Corporation and owned by the Nihtat Gwich'in Council.
Former Nihtat Energy president Grant Sullivan is asking the judge to order the Nihtat Corporation to honour a shareholder agreement, which states that any disputes must be settled by an arbitrator or a mediator, not the courts.
Arbitration is a process that involves a professional arbitrator appointed to oversee a dispute.
The dispute began when Sullivan tried to buy shares in Nihtat Energy. He says the corporation did not respond, triggering the arbitration process. The corporation allege that the shareholder agreement in question gave Sullivan the option of purchasing the majority of shares in the company.
Nihtat Corporation's lawyer, Jessica Buhler, argued in the N.W.T Supreme Court that some issues surrounding the arbitration are being decided in another lawsuit they initiated.
That second lawsuit alleges the shareholders' agreement was made without the knowledge of the directors overseeing Nihtat companies, and is therefore invalid.
Buhler is asking the court to set aside the requirement for arbitration and let the lawsuit prevail.
Sullivan's lawyer, Alyssa Holland, called the lawsuit a delay tactic and argued that case law prevents courts from interfering with arbitration. She also told the court that the allegations made by Nihtat Corporation are broad, contested and unproven.
The lawsuit further alleges that Sullivan and former Nihtat Gwich'in Council president Jozef Carnogursky arranged for Nihtat Energy to take over all of Nihtat Corporation's energy projects and grants, giving Sullivan the option to buy a majority of shares.
Earlier, Carnogursky's lawyer told CBC he is unclear on the factual basis for including Carnogursky in the case, stating, "We are not aware of any wrongdoing."
The judge will rule on whether or not to terminate the arbitration and resolve the entire dispute in court. The decision will be announced at a later date.
ABOUT THE AUTHOR
