N.W.T. gov't sued over cancelled barge delivery
Cambridge Bay company claiming $1.25M in damages
A Cambridge Bay developer is suing the Northwest Territories government for damages it says it suffered as a result of a cancelled barge delivery last year.
Chou Consulting and Development Inc. is seeking an award of $1.25 million, plus legal costs. It claims the cancelled barge delivery scuttled its plans to build a four-plex in the community.
None of the allegations made in a statement of claim filed in federal court on Aug. 23 have been tested in court.
At the end of the 2018 shipping season, the territorial government cancelled barge deliveries to the Nunavut communities of Cambridge Bay and Kugluktuk, as well as Paulatuk in the N.WT.
The minister responsible for the government's newly-acquired Marine Transportation Services (MTS), Wally Schumann, said the cancellations were due to a combination of factors, including bad sea ice conditions, a late start to the season due to high water levels, and a delay caused by a bad shipment of fuel that had to be returned.
During a midterm review in October 2018, MLAs called for Schumann to be fired from cabinet over the cancelled barge shipments. MLAs suggested the problems had more to do with private contracts MTS had taken on and given a higher priority than shipments to communities.
In its lawsuit, Chou states MTS agreed to ship $690,000 of building supplies from Hay River to Cambridge Bay by Aug. 26, 2018. Chou states that, after the supplies were delivered to Hay River, MTS announced it would not be meeting that deadline, but assured Chou that the goods would be delivered by October.
In its statement of claim, Chou states once the government cancelled the barge delivery, it assured the company it would deliver all of the supplies by air. Chou alleges that, while some of the supplies were delivered, others were stored in Inuvik. It states some of the stored material, including drywall, suffered water damage. Other liquid construction materials froze and is no longer useable.
The Northwest Territories government got into the shipping business after the Northern Transportation Company Ltd. went bankrupt. The government bought all of its assets. The 2018 shipping season was its second operating the barge resupply.
The territorial government has not filed a statement of defence. It has 30 days from when the claim was filed to respond to the allegations.