SASKATOON (Staff) — Petro-Canada is suing its former fuel dealer in Wakaw, Sask., for $221,608.27.
That’s how much the Calgary-based oil company says it lost as a result of improper financial dealings by Hrapchak Farm Products Ltd. between 1988 and 1992.
The lawsuit, which names as additional defendants the two directors of the company, George Hrapchak of Wakaw and Ben Boychuk of Cudworth, was filed in Court of Queen’s Bench in Humboldt on July 22. No statement of defence had been filed as of Aug. 11.
Petro-Canada is itself being sued by a Wakaw-area farmer seeking compensation for financial losses suffered as a result of dealing with the Wakaw dealership during that same period.
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The statement of claim says an agency agreement signed by Petro-Canada and Hrapchak in March 1988 gave the defendants “unilateral discretion and control” over funds and other property belonging to Petro-Canada.
The sum of $221,608.27 is described in the statement of claim to represent “wrongful and improper exercise” of that discretion and control, including:
- Failure to properly account for inventory sold or retained.
- Misappropriation or embezzlement of funds received from cash sales intended to be held in trust for Petro-Canada.
- Failure to properly or accurately reflect the true status of the accounts of the oil firm’s credit customers.
- Misappropriation or embezzlement of funds paid to the dealer by credit customers.
The lawsuit says Hrapchak Farm Products Ltd. breached its duties as an agent of Petro-Canada, and as a result, the oil company “has suffered and continues to suffer loss and damage.”
Petro-Canada said it has repeatedly demanded payment of the debt, but the defendant “has neglected and refused and continues to neglect and refuse to pay.”
