A legal dispute between the Canadian Wheat Board and Huyde Farms continues 18 months after it began as the two sides tussle over where the trial should be held.
Hudye Farms near Norquay, Sask., wants the case to be heard in Yorkton, Sask., while the Canadian Wheat Board wants it heard in Winnipeg.
The lawsuit claims the board acted improperly last year in a dispute with the company over the delivery of an ineligible variety of wheat.
The contract was downgraded and eventually voided under rules governing eligible varieties of Canada Western red spring wheat.
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The company is asking for recovery of $247,699 plus interest for improper loss of income and additional expenses related to CWB actions and legal costs.
It’s also claiming damages from the board of $25 million for serious damage to its reputation from “false and defamatory” public statements allegedly made by the board regarding Hudye’s business, along with $10 million for breach of fiduciary duty and $15 million in exemplary and punitive damages. Total damages being sought exceed $50 million.
The board has denied Hudye’s claims and said the case should be resolved in Manitoba, specifically Winnipeg.
Here is a chronology of the case, based on court filings.
• In September 2009, Hudye filed a mandatory declaration with the CWB that all wheat it intended to deliver in 2009-10 would be of a registered CWRS class. Samples submitted to the Canadian Grain Commission confirmed that to be the case.
• Hudye then entered into an 8,625 tonne CWRS delivery contract with the board, using Cargill as its agent.
• In March 2010, Hudye began to deliver against the contract. After receiving 7,419 tonnes, the CWB advised Hudye that subsequent testing had determined 122.5 tonnes of was contaminated by an ineligible variety known as 606/ Granite.
• The board downgraded the 122.5 tonnes to feed, deemed the company to be in default of its contract and claimed damages on the entire 8,625 tonnes, although 1,200 tonnes had yet to be delivered.
• In November, Hudye launched its $50 million claim with Court of Queen’s Bench in Yorkton.
• In December the CWB filed a motion in Yorkton to have the case heard in Winnipeg, arguing the contract specifies legal disputes are to be settled in Manitoba courts using Manitoba law, and most witnesses are from the Winnipeg area.
• In January, Court of Queen’s Bench in Yorkton supported the board’s application and ordered the case be moved to Winnipeg and the agency awarded costs.
Hudye spokesperson Braden Hudye declined to comment on whether thecompany will appeal that latest decision.
