Quebec company says it will sue New Brunswick over failed bid to seize dry dock
Premier Blaine Higgs rejects claims, saying Groupe Océan has no right to complain
· CBC News · Posted: Sep 06, 2019 7:16 PM AT
Groupe Océan says the government's actions caused the company to miss a window for moving the dry dock. (CBC)
Quebec's Groupe Océan says it plans to sue the Higgs government over the province's failed attempt to block it from moving its floating dry dock from New Brunswick to Quebec.
A Federal Court judge ruled Thursday that the province could not prevent the company from moving the dry dock from the shipyard in the village of Bas-Caraquet.
But the government's initial injunction, which blocked the move for several days, caused the company to miss its window to make the move and may delay it by days, weeks or even months.
"To be stopped like that and to have to wait for the next window of opportunity, it will cost us a lot of money, and for sure, we will assert our rights in regard to this cost," said company spokesperson Philippe Filion.
Higgs rejects allegation of 'bad faith'
Filion said the province acted in bad faith when it went to Federal Court for an order blocking the move just days before the company's long-planned date
.
The government knew for months that Groupe Océan could only move the dry dock at high tide, Filion said. He accused the province of halting the move during that window and then not making a strong case once the opening had passed.
"For us, this is bad faith," he said Friday.
Premier Blaine Higgs rejected that, saying Groupe Océan had secured a sweetheart deal that gave it no right to complain.
"Given the lucrative nature of this contract that the province handed to them a few years ago, it's kind of ironic they would take that position," he said.
He said the ruling wasn't a defeat for the province because it will also see Groupe Océan pay the province $260,000 in bail for the dry dock.
Premier Blaine Higgs says Groupe Océan secured a sweetheart deal that gave it no right to complain. (CBC)
And he said the company's supposed window for launching the dry dock has shifted by several days in discussions with provincial officials. The government gave them permission before the court action to get ready to move the dry dock, he said.
"I think what the delay is going to turn out to be is the hurricane," he said, meaning Hurricane Dorian, which is expected to affect New Brunswick on the weekend.
Groupe Océan is an anchor tenant at the New Brunswick Naval Centre, the government-owned shipyard in Bas-Caraquet. The province took over ownership under the previous Liberal government after the yard ran out of money.
Not enough local workers, company says
Groupe Océan says it always planned to build the dry dock at the shipyard to give local workers training and experience for future projects, and then move it to its other facilities in Quebec.
The province accused the company of trying to move the dry dock before it was finished to complete electrical work on it there.
The company claimed that it could not find qualified workers to do the job in Bas-Caraquet, though both Higgs and a provincial trade union disputed that claim. The province took what Higgs called the "extreme measure" to seize the dry dock to force the company to do the work here.
But Filion said the province's move was an attempt to blame Groupe Océan for the problems at the shipyard. Several other boat builders are tenants at the yard.
The premier said that's an overly generous deal that sees New Brunswick taxpayers subsidize infrastructure for a Groupe Océan facility in Quebec that will draw business away from Bas-Caraquet.
"This is a disgrace, the deal that was struck here," he said.
Filion acknowledged Hurricane Dorian is a factor in when the dry dock can be launched, but he said unsettled fall weather will also create obstacles.
"We continue to work on different scenarios and we're trying to figure out what the next window of opportunity will be to launch the floating dry dock," he said.
The cost of the delay could run to six figures and includes the expense of keeping two tugboats and a barge on standby in Bas-Caraquet, he added.
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46 Comments
Commenting is now closed for this story. Dan Armitage
Love those northern neighbours
Marguerite Deschamps
Reply to @Dan Armitage: I appreciate your love for us. I really do!
Marguerite Deschamps
And you should, I might add. We send our tax money south and we get nothing in return.
Lewis Taylor
Reply to @Dan Armitage:
Really Higgs illegally blocked a contractual agreement. Anyone would sue...I sure would!!
Really Higgs illegally blocked a contractual agreement. Anyone would sue...I sure would!!
Al Clark
Reply to @Marguerite Deschamps: More of them would have to learn to read to fix that.
Bill Thompson
Reply to @Marguerite Deschamps:
SNC Lavalin, Vice Admiral Norman, Adscam, etc., etc.
SNC Lavalin, Vice Admiral Norman, Adscam, etc., etc.
Lou Bell
Time for NB to put the boots to every Quebec company working here until they want to play fair ! Gotten away with it Waaaayyy too long !
BruceJack Speculator
Reply to @Lou Bell:
This was main reason I was glad to see the sale of NB Power fail, but we
know there are plenty of problems with the way it is managed even
without selling to that province. And what was the name of that company
that took so much extra time to repair the Princess Margaret bridge ? S
n something ?
David Amos
Reply to @BruceJack
Speculator: Methinks everybody knows that the sale of NB Power failed
because Quebec backed away from the deal N'esy Pas?
Lewis Taylor
Reply to @Lou Bell:
Nice way to disguise your racism
Nice way to disguise your racism
Jake Devries
OK Premiers, all 9 premiers, stay out of ANY deals with Quebec...you will get burned every time...
David Amos
Reply to @Jake Devries: Methinks the ghost of Joey Smallwood no doubt agrees with you N'esy Pas?
Marguerite
Deschamps
Reply to @David Amos:
Joey signed a legal contract not knowing the long term consequences of
the deal he signed on behalf of his province while not looking further
than his nose. Like you and Jacquie Vautour, Newfoundland sued over the
same thing and lost every time. You all could learn a lesson in "res
judicada" and "estoppel".
David Amos
Reply to @Marguerite
Deschamps: Methinks your liberal lawyer buddies should study Rule 55 of
the Federal Court Rules then explain to Trump and the Chinese the
introduction to Trudeau The Elder's oh so special Charter that your
Queen assented but your Quebecker buddies do not agree with N'esy Pas?
David Amos
Reply to @David Amos: Go Figure why I am heading for the Supreme Court
Rule 55 In special circumstances, in a proceeding, the Court may vary a rule or dispense with compliance with a rule.
SOR/2004-283, s. 11
Rule 55 In special circumstances, in a proceeding, the Court may vary a rule or dispense with compliance with a rule.
SOR/2004-283, s. 11
Rosco Holt
It depends on what is in the agreement / contract.
Base on past agreements the province will likely lose.
Either there's no/ weak clauses protecting taxpayers money or government(s) turns a blind eye.
David Amos
Reply to @Rosco holt: I agree
Jonas Smith
Let them, maybe they'll get a sense of what Quebec does to the RoC.
Marguerite Deschamps
Reply to @Jonas
Smith: all Maritime Provinces get way more transfer payments per capita
from Ottawa than Quebec does, if this is your point. And they also pay
way more to Ottawa in taxes to boot.
David Amos
Reply to @Marguerite Deschamps: Spoken like true Quebecois N'esy Pas?
Lou Bell
Reply to @Marguerite Deschamps: As usual , language trumps common sense , right Marc uerite !!!
Marguerite Deschamps
Reply to @Lou Bell: it certainly is the case for you!
BruceJack Speculator
Is it unfair to say . . . don't make any deals with the neighbouring province with NB taxpayers' money?
Marguerite Deschamps
Reply to @BruceJack
Speculator: The courts will determine which one respected the law. If
the Harper government is any indication of how much the CONservatives
know about the law, it does not bode well for the province. Harper was
rebuffed by the courts at every turn.
Jake Devries
Reply to @BruceJack Speculator: not at all...when Que comes calling, run, run away as fast as you can...
Marguerite
Deschamps
Reply to @Jake Devries: the prince of Bermuda is not from Quebec. How we trust him, eh?
David Amos
Reply to @Marguerite Deschamps: Who is we?
David Amos
Reply to @Marguerite
Deschamps: Methinks everybody knows Harper appointed most of the Judges
in Canada after he had politically vetted them The first one was your
hero Richard Bell N'esy Pas?
Marguerite
Deschamps
Reply to @David Amos: Who is we? I was asking the question!
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