CWB wants $50 million lawsuit moved to Winnipeg court

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Published: December 17, 2010

The Canadian Wheat Board wants to stay at home to defend itself against the $50 million plus lawsuit against the marketing agency launched by Huyde farms of Saskatchewan.

On the Dec. 14 deadline for the board to file its statement of defence, the agency instead filed a motion in Court of Queen’s Bench in Yorkton, Sask., to have the case moved to Winnipeg from Yorkton.

There was no immediate response from the court or from Huyde Farms to the board’s motion.

Huyde is required to respond to the court by Dec. 20.

In its motion, the board says the majority of witnesses to be called by the board in its defence, including employees of the CWB, the Canadian Grain Commission and Cargill Ltd., live in Winnipeg or area.

Also, Huyde Farms, while located in Norquay, Sask., is registered to carry on business in Manitoba and the contract under dispute includes a clause saying the courts of Manitoba will have exclusive jurisdiction in the case of any dispute.

The board also notes that even if the case is heard in Yorkton, there be travel costs for Huyde officials.

“It would be more convenient and less expensive for the parties and witnesses if the action proceeded in Manitoba,” the board said.

The lawsuit claims the board acted improperly earlier this year in a dispute with the company over the delivery of an ineligible variety of wheat.

The GrainFlo contract for 8,625 tonnes of wheat was downgraded and eventually voided under rules governing eligible varieties of Canada Western Red Spring wheat.

The company denies there was any ineligible variety in the shipments in question, saying test results from the Canadian Grain Commission provided a clean bill of health.

It is asking for recovery of $247,699 plus interest for improper loss of income and additional expenses related to CWB actions and legal courts.

It’s also claiming damages from the board totalling $25 million for damage to its reputation, $10 million for breach of fiduciary duty and $15 million in exemplary and punitive damages, boosting the total to more than $50 million.

The board hasn’t replied in specifics to the allegations but has denied wrongdoing.

About the author

Adrian Ewins

Saskatoon newsroom

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