Input Capital has appealed a recent court decision that set aside a contract between the canola-streaming contract company and a client.
The Regina company was awarded nearly $4.4 million in a Court of Queen’s Bench decision after it sued Macoun, Sask. farmer Terry Gustafson for $7.5 million.
The judge’s decision found that Gustafson signed an increasing number of contracts as he sought to get out of financial difficulty, but they gave the company more control.
The company paid Gustafson $4.5 million during 2014 and 2015, which the judge ordered Gustafson to repay.
Justice J.D. Kalmakoff also deemed the company’s contracts “unconscionable” and said there was a large imbalance in bargaining power. That ruling nullified the contract.
Input president Doug Emsley said prior to filing the appeal that the company couldn’t say much at this time, but noted the court ruled in its favour on a number of points, including that the company didn’t breach its contractual obligations.
Lawyer Tony Merchant represents plaintiffs in a class-action lawsuit launched against Input in May.
Asked how the court ruling would affect the lawsuit, he replied that farmers with past or current contracts should contact his law firm.
“Input’s contracts are essentially all the same,” he said. “The class-action judge must or essentially must certify. It is hard to imagine that Input can survive.”