Saskatchewan Wheat Pool still hopes to sell one of two elevators that
were the subject of a lawsuit dismissed by a Regina judge May 17.
The Queen’s Bench justice ruled against a numbered company that accused
the pool of reneging on an agreement to sell the Rama and Pelly B
elevators.
The elevators were offered for sale in February 2000 under the pool’s
tendering program. The pool initially accepted offers for the
elevators, even though they were well below the minimum asking price.
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But further negotiations over a grain marketing agreement faltered, and
the farmer-owners of the numbered company began legal action last fall.
The case went to court in April.
The judge agreed with the pool, which argued there was never a
contract.
“It is the finding of the court that the parties herein never reached
complete agreement on the terms and conditions to govern the sale of
the elevators,” the judgment said.
Pool general counsel corporate secretary Susan Engel said accusations
made by the numbered company’s farmer-owners cast the elevator sales
program in a bad light, and it was important for the pool to win in
court.
“There were a lot of allegations made in a public forum,” she said. “We
were very concerned that the successful program was being tainted.”
The pool has sold 170 facilities since 1998, and sales of another 41
are pending.
“We’re pretty optimistic that we’ll be able to sell Rama,” Engel said.
However, the condition of Pelly B “is such that we’re not optimistic.”
The Rama elevator will likely be listed with the realty firm that now
handles pool elevator sales.
Engel said the farmers who sued the company could again attempt to buy
it.
