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David Raymond Amos @DavidRayAmos
Replying to @DavidRayAmos@Kathryn98967631 and 49 others
Methinks the Wise guy at Goodmans has an interesting lawsuit in my stomping grounds N'esy Pas?
"Your message wasn't delivered to hwise@goodmans.ca because the address couldn't be found"
"Your message wasn't delivered to hwise@goodmans.ca because the address couldn't be found"
YEA RIGHT
#nbpoli#cdnpoli
https://www.cbc.ca/news/canada/new-brunswick/hb-construction-comstock-potashcorp-lawsuit-amec-1.4980898
Jim Moore
Graeme Duke-Gibbs
Stephanie Haslam
https://www.cbc.ca/news/canada/new-brunswick/potashcorp-comstock-amec-foster-wheeler-nutrien-picadilly-mine-lawsuit-breach-contract-1.4969068
https://www.cbc.ca/news/canada/new-brunswick/hb-construction-comstock-potashcorp-lawsuit-amec-1.4980898
Mystery company at heart of $53M potash mine lawsuit
HB Construction Company 'purchased' lawsuit after Comstock Canada became insolvent
Connell Smith· CBC News·
Five years ago an unknown Alberta-registered company, HB Construction, picked up some land, vehicles and equipment following the collapse of another company, Comstock Canada Ltd. of Burlington, Ont.
Total cost: $4.5 million.
Thrown into the deal at no extra charge was ownership of a lawsuit Comstock had earlier launched against a couple of big players in Canada's corporate world: PotashCorp of Saskatchewan and AMEC Americas Inc.
The suit relates to disputes that arose between Comstock and those companies in 2009-2010 during construction of PotashCorp's now-closed mine in Penobsquis.
HB, which had nothing whatsoever to do with the mine project, decided to continue the lawsuit, which is now at trial in a Saint John courtroom.
If successful the company could see a $53 million payday.
Asked about the HB purchase of the lawsuit, Wise said the details would come out in the trial.
Attempts by CBC News this week to reach the company were unsuccessful.
The Calgary corporate headquarters listed on 7th Avenue SW is home to a law firm.
The company left its quarters in Edmonton, at 2544 Ellwood Dr. SW, about five years ago, according to the commercial realtor now listing the suite.
Phone numbers in both cities are no longer active.
There was no response to messages left by email with company president Geoffrey Birbeck.
The company's legal team in Saint John also has not yet responded.
HB Construction was registered in November 2013 the same month it purchased the Comstock assets.
Its last annual return was filed in 2017. The 2018 return is listed by the Alberta Corporate Registry as outstanding.
The registry lists HB's parent as Williams Companies International Holdings B.V. in Amsterdam. A woman answering the phone there took CBC's contact information.
HB's lack of profile in Canada is a factor in the case.
"HB Construction is not a resident of New Brunswick and has no assets in the Province," states the pre-trial brief filed in the PotashCorp case by co-defendant AMEC.
"Its presence in Canada is uncertain. There was no evidence HB Construction had assets sufficient to pay any costs awarded against it."
The concern over whether HB is in a position to pay damages if it loses the case led Justice William Grant of the Court of Queen's Bench to order the company to post bonds of $2.8 million as security to cover defendant PotashCorp and/or AMEC's costs.
Comstock was hired during construction of the Picadilly potash mine in August 2009 to install equipment and instrumentation inside a large on-site building known as the "compaction plant."
The company was to be paid $36 million.
On July 21, 2010, Potashcorp terminated the contract. In its court brief, the company says it "lost confidence in Comstock's ability or intention to complete the project in a timely or cost-effective manner."
In June 2013, at the time it made a filing under the Bankruptcy and Insolvency Act, Comstock was one of Canada's biggest construction companies, with well over 1,000 union and non-unionized workers.
It owed more than $75 million to creditors.
The case will have no bearing on the future of the Picadilly mine, which was closed permanently by PotashCorp, which has rebranded itself Nutrien.
Forty days have been set aside for the trial.
Total cost: $4.5 million.
Thrown into the deal at no extra charge was ownership of a lawsuit Comstock had earlier launched against a couple of big players in Canada's corporate world: PotashCorp of Saskatchewan and AMEC Americas Inc.
The suit relates to disputes that arose between Comstock and those companies in 2009-2010 during construction of PotashCorp's now-closed mine in Penobsquis.
HB, which had nothing whatsoever to do with the mine project, decided to continue the lawsuit, which is now at trial in a Saint John courtroom.
If successful the company could see a $53 million payday.
- PotashCorp suit begins over construction problems at mine near Sussex
- Nutrien permanently closes New Brunswick potash facility
- PotashCorp suspends Picadilly mine in N.B., cuts 430 jobs
Asked about the HB purchase of the lawsuit, Wise said the details would come out in the trial.
Attempts by CBC News this week to reach the company were unsuccessful.
The Calgary corporate headquarters listed on 7th Avenue SW is home to a law firm.
The company left its quarters in Edmonton, at 2544 Ellwood Dr. SW, about five years ago, according to the commercial realtor now listing the suite.
Phone numbers in both cities are no longer active.
There was no response to messages left by email with company president Geoffrey Birbeck.
The company's legal team in Saint John also has not yet responded.
Its last annual return was filed in 2017. The 2018 return is listed by the Alberta Corporate Registry as outstanding.
The registry lists HB's parent as Williams Companies International Holdings B.V. in Amsterdam. A woman answering the phone there took CBC's contact information.
HB's lack of profile in Canada is a factor in the case.
"HB Construction is not a resident of New Brunswick and has no assets in the Province," states the pre-trial brief filed in the PotashCorp case by co-defendant AMEC.
"Its presence in Canada is uncertain. There was no evidence HB Construction had assets sufficient to pay any costs awarded against it."
Had to post bonds
The concern over whether HB is in a position to pay damages if it loses the case led Justice William Grant of the Court of Queen's Bench to order the company to post bonds of $2.8 million as security to cover defendant PotashCorp and/or AMEC's costs.
Comstock was hired during construction of the Picadilly potash mine in August 2009 to install equipment and instrumentation inside a large on-site building known as the "compaction plant."
The company was to be paid $36 million.
On July 21, 2010, Potashcorp terminated the contract. In its court brief, the company says it "lost confidence in Comstock's ability or intention to complete the project in a timely or cost-effective manner."
Suit has no effect on closed mine
In June 2013, at the time it made a filing under the Bankruptcy and Insolvency Act, Comstock was one of Canada's biggest construction companies, with well over 1,000 union and non-unionized workers.
It owed more than $75 million to creditors.
The case will have no bearing on the future of the Picadilly mine, which was closed permanently by PotashCorp, which has rebranded itself Nutrien.
Forty days have been set aside for the trial.
8 Comments
Jim Moore
If the company is gone and bankrupt or insolvent they don't have a chance of recovering even a penny
Content disabled.
David R. Amos
David R. Amos
@Jim Moore I would not bet the farm on that opinion. The the wiseguys at Goodmans don't work for free on frivolous matters Ask Mr Higgs they helped him get a grip on all the bureaucrat's pensions that has spawned 3 lawsuits thus far N'esy Pas?
Graeme Duke-Gibbs
Sounds like an episode on Suits...
David R. Amos
@Graeme Duke-Gibbs Methinks everybody knows that I seldom wear a suit but the crooked dudes in suits do consider me the barbarian at their gate Trust that all their political cohorts know I feel honoured that they do N'esy Pas?
Stephanie Haslam
Here is another interesting link about the sale of the parent company. https://www.sec.gov/Archives/edgar/data/107263/000119312516680304/d189781dex21.htm?fbclid=IwAR2SFFHOFZ85_q2e7kPFqvYv44qs_5x0yVO3B4C1lDQoncKM8eHhmZH3cF0
David R. Amos
@Stephanie Haslam Hmmm Thank you
https://www.cbc.ca/news/canada/new-brunswick/potashcorp-comstock-amec-foster-wheeler-nutrien-picadilly-mine-lawsuit-breach-contract-1.4969068
PotashCorp suit begins over construction problems at mine near Sussex
Comstock Canada Ltd. seeks $53 million in suit over mine that is now closed
Connell Smith· CBC News·
More than 40 file boxes of documents were stacked in a Saint John courtroom as 10 lawyers representing three companies settled in Monday for the opening of what is expected to be an eight-week trial over construction practices at the former PotashCorp mine in Penobsquis, near Sussex.
The case will have no impact whatsoever on the future of the mine, where operations were suspended in January 2016, about 15 months after the $2.2 billion dollar facility went into production.
About 430 direct jobs were lost.
The company, now named Nutrien, announced the permanent closure of its Picadilly mine in November 2018.
The lawsuit was launched during construction in 2010 after PotashCorp terminated Comstock Canada Ltd.'s contract.
Comstock launched a $53 million suit against PotashCorp and engineering management company Amec Foster Wheeler.
It alleges breach of contract. The company claimed in court documents that it couldn't complete the work on time or on budget because PotashCorp and Amec both breached the contract by adding to the scope of work and changing the designs.
"Design changes started early on the project," Comstock lawyer Howard Wise said in his opening remarks to Justice Deborah Hackett.
"You will hear about schedules and changes to those schedules."
"Comstock could not finish the contract as originally agreed."
Wise told the court that evidence will be presented to show that design changes changed the scope and the cost of the work, and that those changes continued even after Constock's termination in July 2010.
Wise said other "pieces of the puzzle" were required to be in place for Comstock's workers to do their job.
But the building was not enclosed, as agreed beforehand, and two large 10-tonne and 25-tonne cranes were also not available when needed.
Comstock Canada filed for insolvency in 2014 under the Companies' Creditors Arrangement Act, but the Comstock name is still being used in the suit.
None of the allegations have been proven in court.
The case will have no impact whatsoever on the future of the mine, where operations were suspended in January 2016, about 15 months after the $2.2 billion dollar facility went into production.
About 430 direct jobs were lost.
The company, now named Nutrien, announced the permanent closure of its Picadilly mine in November 2018.
The lawsuit was launched during construction in 2010 after PotashCorp terminated Comstock Canada Ltd.'s contract.
Comstock launched a $53 million suit against PotashCorp and engineering management company Amec Foster Wheeler.
It alleges breach of contract. The company claimed in court documents that it couldn't complete the work on time or on budget because PotashCorp and Amec both breached the contract by adding to the scope of work and changing the designs.
"You will hear about schedules and changes to those schedules."
"Comstock could not finish the contract as originally agreed."
Wise told the court that evidence will be presented to show that design changes changed the scope and the cost of the work, and that those changes continued even after Constock's termination in July 2010.
Wise said other "pieces of the puzzle" were required to be in place for Comstock's workers to do their job.
But the building was not enclosed, as agreed beforehand, and two large 10-tonne and 25-tonne cranes were also not available when needed.
Comstock Canada filed for insolvency in 2014 under the Companies' Creditors Arrangement Act, but the Comstock name is still being used in the suit.
None of the allegations have been proven in court.
About the Author
Connell Smith
Reporter
Connell Smith is a reporter with CBC in Saint John. He can be reached at 632-7726 Connell.smith@cbc.ca
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