Wednesday 10 April 2024

Business owner who lost N.B. Liquor agency contract makes his case

 

Business owner who lost N.B. Liquor agency contract makes his case

Corporation’s lawyer compares Peter Cook’s arguments to ‘a treasure hunt without a treasure map’

A judge has reserved his decision in a legal challenge by a Hartland business owner over what he calls a case of political influence over a lucrative N.B. Liquor contract.

Peter Cook alleges he lost a bid to renew his agency store contract in 2021 for political reasons — because he's a Liberal and because a friend and supporter of Premier Blaine Higgs chairs the Crown corporation's board.

Cook's lawyer, Erica Brown, finally laid out his case in Court of King's Bench Wednesday morning, almost three years after he lost the contract.

But N.B. Liquor's lawyer, Clarence Bennett, responded that the claims were "little more than innuendo," telling Justice Terrence Morrison that Cook and Brown were "on a treasure hunt without a treasure map."

Brick buildings on either side of a street frame a bridge in the distance. Town leaders and business executives in Hartland complained that the decision to award the N.B. Liquor contract to Valu Foods grocery store, about one kilometre away near the edge of the town, would hurt the effort to keep the downtown alive. (Mike Heenan/CBC)

Cook bought the Courtyard Convenience Store in Hartland in 2019, taking over its liquor agency store, and later spent $800,000 renovating, at N.B. Liquor's suggestion, his adjacent Fresh Mart grocery store to accommodate the agency products. 

He did that with a "legitimate expectation" that the contract would be rolled over again when it expired in 2021, as it had been since the convenience store won it in 1996, Brown argued.

Instead, N.B. Liquor issued a new request for proposals in 2021 and awarded it to the Valu Foods grocery store, about one kilometre away near the edge of the town.

WATCH | 'We did what they asked.' Hartland businessman says on losing liquor contract:
 

Hartland agency liquor store case heads back to court

Duration 3:25
Peter Cook alleges that N.B. Liquor manipulated selection criteria to award agency store contract to a competitor.

Town leaders and business executives in Hartland complained that the decision would hurt the effort to keep the downtown alive. 

Bennett told Justice Terrence Morrison Wednesday that Cook had "a sense of entitlement" that the contract would be automatically renewed — but ought to have known that wasn't a sure thing. 

Cook did not take the request for proposals process seriously, said Bennett, with the attitude "I'm going to get it anyway." 

"Then he's shocked when a bid that's not very good is unsuccessful."

Andrew Kinley, lawyer for Valu Foods, agreed that Cook was, in effect, seeking to hold onto the agency contract "in perpetuity," something he couldn't do. 

An Irving gas station and convenience store with cars sitting at the pumps. The owner of Valu Foods, Richard Orser, did not respond to an interview request from CBC News Tuesday. (Jacques Poitras/CBC)

Cook argues that his bid was superior.

In his first year with the agency store, he said sales jumped $449,000 — an increase of 27 per cent.

But, he said, N.B. Liquor's scoring system for the bids was skewed against him.

A traffic count used by N.B. Liquor didn't measure vehicles coming toward the store from the town's iconic covered bridge across the street, from a street leading from residential neighbourhoods behind the store and from Main Street, downriver.

"This wasn't a true reflection of traffic flow," Brown said. "The placement of the counter at the Fresh Mart was arbitrary and missed a lot of vehicles."

Cook hired an engineering firm to get his own numbers using counters in all directions. It showed traffic volumes near his store double that near the Valu Foods store.

That would have changed the points calculation in Cook's favour, Brown said.

A woman with long brown hair wearing a suit walks outside a courthouse. Peter Cook's lawyer Erica Brown laid out her client's case in court on Wednesday. Cook also claims that among other errors, the N.B. Liquor assessment understated his visibility in the heart of Hartland, across from a major tourist destination, and overstated his competitor's. (Jacques Poitras/CBC)

Cook also claims the N.B. Liquor assessment understated his visibility in the heart of Hartland, across from a major tourist destination, and overstated his competitor's.

Brown told the judge Wednesday that the scoring didn't award him points for a sign he committed to install protruding from the building.

"It was ignored," she said.

Cook believes the decision was made because he is a known Liberal supporter, because N.B. Liquor chair John Correia is a prominent Progressive Conservative close to Premier Blaine Higgs, and because the corporation favours stores attached to Irving gas stations.

But Bennett said there was no evidence to back up what he called "salacious allegations" and "conspiracy theories." 

He argued Cook lost points in the bidding process for legitimate reasons: Cook charged a higher commission than the Valu Foods store planned to and he had shorter opening hours.

"It's their burden," he said of Cook and Brown, "to show the unfairness and provide the evidence that the decision is unreasonable." He argued they had not.

The owner of Valu Foods, Richard Orser, did not respond to an interview request from CBC News Tuesday.

ABOUT THE AUTHOR


Jacques Poitras

Provincial Affairs reporter

Jacques Poitras has been CBC's provincial affairs reporter in New Brunswick since 2000. He grew up in Moncton and covered Parliament in Ottawa for the New Brunswick Telegraph-Journal. He has reported on every New Brunswick election since 1995 and won awards from the Radio Television Digital News Association, the National Newspaper Awards and Amnesty International. He is also the author of five non-fiction books about New Brunswick politics and history.

 
 
 
103 Comments
 
 
 
David Amos
I enjoyed the circus today mainly because it concerned a legal argument   
 

Al Clark
Reply to David Amos
"did not did not" is hardly a legal argument........
 
 
 
David Amos
"Peter Cook alleges he lost a bid to renew his agency store contract in 2021 for political reasons — because he's a Liberal and because a friend and supporter of Premier Blaine Higgs chairs the Crown corporation's board."

I Agree 

 
Lou Bell 
Reply to David Amos  
Perhaps you can also tell us how the new Shell at the Nevers Road exit got the contract away from the Irving then .
 
 
David Amos
 
Reply to Lou Bell
Ask Higgy
 
 
David Amos
Reply to Lou Bell
Why flag me after asking me a question? 
 
 
 
 
David Amos

"The owner of Valu Foods, Richard Orser, did not respond to an interview request from CBC News Tuesday."

Go Figure

 

David Amos
 
"Cook believes the decision was made because he is a known Liberal supporter, because N.B. Liquor chair John Correia is a prominent Progressive Conservative close to Premier Blaine Higgs, and because the corporation favours stores attached to Irving gas stations."

I concur and all the lawyers know it 

 

David Amos   
"But N.B. Liquor's lawyer, Clarence Bennett, responded that the claims were "little more than innuendo," telling Justice Terrence Morrison that Cook and Brown were "on a treasure hunt without a treasure map."

Too Too Funny

 
G. Timothy Walton 
Reply to David Amos
"I can smell that treasure from here! Arrr-ving!"
 
 
David Amos

Reply to G. Timothy Walton 
Bennett needs to review his email account   
 
 
David Amos

Reply to G. Timothy Walton 
The one I sent him Sep 14, 2022, 3:41 PM was a dilly   
 
 
David Amos
Reply to G. Timothy Walton  
Trust that you would have enjoyed my reply
 
 
 
 
David Wilson
Is this even remotely surprising behavior by the Higgs government?  
 
 
David Amos
Reply to David Wilson 
Nope 
 
 
David Amos
Reply to David Wilson  
Yesterday you asked me who cares? 
 
 
 
MR Cain  
When every third worker in the province is paid by the oligarch, what do we do? 
 
 
David Amos
Reply to MR Cain  
Who is we???  
 
 
 
 
Shawn Tabor 
Where there is smoke, there is definitely fire, a terrible state of affairs we have here in NB. You do not even have to make this stuff up, it truly happens. Conservatives or Liberals. My whole life, been watching this, can even go further and say, personally saw this go down on many different topics. This is not even close to being a conspiracy or any other name you might want to call it. THIS TRULY HAPPENS. Listen to a certain family member bragg about it openly, then it happens. They and others call it BUSINESS in little NB the place to be where folks and families get wealthy on the backs of taxpayers. Taxes and death, yee haa. Funny when these humans pass, and who shows up at the funeral. History can’t make this stuff up.   
 
 
David Amos
Reply to Shawn Tabor
Too bad you didn't listen to me 20 years ago   
 
 
 
 
Lou Bell   
Perhaps JP should check into the new store being built on the TCH at the Nevers road exit . A Shell getting the contract that the Irving across the highway has had for years . 
 
 
Le Wier 
Reply to Lou Bell 
They sell booze at the Lincoln Big Stop do you think they will award a contract for selling booze at the new Shell station you are talking about?  
 
 
Lou Bell 
Reply to Le Wier
They already have the contract . And yes , they are getting the outlet , target , 1st of June .  
 
 
Lou Bell 
Reply to Le Wier
And a close relative of the former Liberal premier at that  
 
 
Le Wier 
Reply to Lou Bell 
Oh wow good to know. How many pumps do you think it will have?  
 
 
Lou Bell 
Reply to Le Wier
Sorry to bust the liberal " bubble " , but yup the Shell has the new contract , a done deal  
 
 
Le Wier 
Reply to Lou Bell
Yes you’re right on that one.  
 
 
Le Wier 
Reply to Lou Bell
So Scholten is opening the new Shell station?  
 
 
David Amos
Reply to Le Wier   
Now ya know 
 
 
Le Wier
Reply to David Amos 
That is interesting. One would think with the push for electric vehicles and the price of gas always on the rise opening up another gas station wouldn’t be a good business move, but perhaps that is not the case. 
 
 
David Amos
Reply to Le Wier
FYI My son owns 3 different models of Teslas a 3, a Y and an X and 2 Harleys as well (one is electric) Yet when he called me yesterday he was enjoying his only gas powered machine in the mountains just north of Mexico where he dared not go with his other toys  
 
 
Le Wier
Reply to David Amos
That’s cool. 😊 
 
 
 
 
robert brown
Typical political in a province owned by the Irving's and political hacks   
 
 
David Amos

Reply to robert brown 
There another powerful Clan 
 
 
David Amos

Reply to David Amos 
Our former Fed Finance Minister married one of them
 
 
David Amos
Reply to David Amos
There are others
 
 
 
Samual Johnston 
Where does Shell, Petro-Canada, Sholton’s, Co-op, Sobey’s, Esso, C-tire and Costco gas come from? 
 
  
David Amos
Reply to Samual Johnston 
Our pension plans   
 
 
 
 
Douglas James
Some cases are just too obvious to even need a 'trial'. Whenever I see things like this I recall the Hatfield government's scandal in the late 70s when the Conservatives were taking kickbacks for liquor hauling contracts. Nothing ever changes. This is New Brunswick after all, the province where too few people are willing to admit that both the Conservatives and the Liberals have failed to improve life here for well over a century and a half.   
 
 
David Amos
Reply to Douglas James 
Perhaps you should run for public office again  
 
 
 
 
Allan Marven
Making nepotism legal is creating much unfairness and incompetence.   
 
 
David Amos
Reply to Allan Marven 
What else is new? 
 
 
 
   
Marc LeBlanc
Taken from the liberal "can you help out a friend of ours" playbook

What irks me is when you tell people about this they give you the "that's been going on forever"response.

 
David Amos

Reply to Marc LeBlanc 
Its a dog eat dog world when it comes to politicking



 
Alison Jackson   
Higgy strikes again. Buddies and pals get first dibs just like Dougie in Ontario. 
 
 
David Amos
Reply to Alison Jackson    
Par for the course
 
 
Dan Lee  
Reply to David Amos
your still not getting your harley back............bahaha


David Amos

Reply to Dan Lee  
Are you proud of yourself? 
 
 
David Amos

Reply to Dan Lee  
Do you enjoy my blog? 
 
 
David Amos
Reply to Dan Lee  
Wow
 
 
 
 
Bobby Richards 
This seemed shady right from the beginning.  
 
 
David Amos
Reply to Bobby Richards
Of course  
 
 
 
 
Laura Smith
Is it a coincidence that the Irving got the contract and our Premier used to work for the Irvings? All convenience stores should sell beer and a limited selection of wine and liquor. Shut down the NB Liquor stores. Our province is too small to support these minimum wager workers with their high salaries. 
 
 
Stephane Bourgoin
Reply to Laura Smith 
Some people should check and see how much money those minimum wager employees you menitonned make for the people of N.B. Like what over 200 million after all expenses paid? I am sure that if we got rid of the stores the money would go to the owners and they would still pay minimum wage. That money would only benefit the owners. Just what we need the same wealthy people making more money. 
 
 
David Amos
Reply to Stephane Bourgoin 
Well put but at least the taxpayers would be off the hook
 
 
Stephane Bourgoin
Reply to Laura Smith 
At Least NB liquor actually makes money and only have a minumum of employees to do it like 500. They do not have that many people earning over 100k (20) Where you have NB Power that have 50 people earnign over 250k and and 100 earning over 125k and they keep losing money. You could say NB Liquor is their savior.
 
 
Stephane Bourgoin
Reply to Stephane Bourgoin 
And about 700 people between the 100-125k a year 
 
 
David Amos

Reply to Stephane Bourgoin 
Perhaps you should check my work within the EUB 


Stephane Bourgoin
Reply to Laura Smith
I also didnt mention the NB power bonuses for not making money 
 
 
David Amos

Reply to Laura Smith
It appears that your opponent is ignoring me  
 
 
Shawn Tabor 
Reply to David Amos  
Well said, good statement  
 
 
David Amos 

Reply to Shawn Tabor  
There were others but they went "Poof" as usual





William Murdoch  
Is it true that the new Sholten's when it opens (Lincoln exit TCH) up across the highway? 
 
 
Bobby Richards
Reply to William Murdoch
You're not asking a question.  
 
 
William Murdoch
Reply to Bobby Richards  
Rumour has it that they will be the new outlet.  
 
 
David Amos
Reply to William Murdoch   
Ask them 
 
 
Le Wier 
Reply to William Murdoch  
Why would they open a new gas station so close to the Irving Big Stop? 
 
 
Le Wier 
Reply to William Murdoch  
The Scholten is ran by Alex Scholten who also is a part owner of Victory Meat Market Fredericton and he ran last election for the Liberals. 


David Amos
Reply to Le Wier 
Remember the fracas up on the Hanwell when Daniel Allain was boss of NB Liqour???  
 
 
Le Wier 
Reply to David Amos  
I didn’t until you mentioned it. It’s almost like Deja vu. 
 
 
David Amos
Reply to Le Wier   
C'est Vrai   
 
 
 
 
rayma allaby 
why would you put the liquor store out by value foods when there is a grocery store right near where the liquor store used to be...doesn't make sense..but irving gas stations with stores connected to them make great deals eh higgsie  
 
 
William Murdoch 
Reply to rayma allaby  
What about the new Sholten's at the Lincoln exit. 
 
 
Samual Johnston 
Reply to rayma allaby  
So you are against a transparent tendering system just go with whatever makes sense to you? There may be an issue with this particular process but not the concept 
 
 
Bobby Richards 
Reply to rayma allaby  
Higgs thinks he is untouchable
 
 
rayma allaby
Reply to William Murdoch 
william i don't live near lincoln..i live near hartland. and unless the story involves fredericton i tend not to comment because i don't know enough about the situation...but if you are saying a liberal got a break..well gotta keep the opposite vote as well cause you gotta make it look good.  
 
 
rayma allaby
Reply to Samual Johnston  
i am saying that that the liquor store had been in that spot for over 20 years. higgsie comes in and all of a sudden omg we gotta get it up by the irving gas.  
 
 
Bud Gardiner 
Reply to Bobby Richards   
Couldn’t agree more. Both he and the Chair of NB liquor think the same way.

I’d like to know if the so-called NB Liquor whistleblower –who reported 34 examples of "financial, ethical and illegal irregularities" at the agency - from a couple of years ago was ordered to turn over the documents containing “alarming information in Hartland case” (from CBC article Nov./21) Clark’s lawyer, Ms. Brown, requested. 

 
David Amos
Reply to Samual Johnston 
Surely you jest  
 
 
Samual Johnston 
Reply to rayma allaby  
Or the store has been awarded the contract the past twenty years and then a new company submits a competing submission and is awarded the contract. Was the original award given because he was liberal or maybe no competition? Either way the tender system is the way to go.  
 
 
David Amos
Reply to Bud Gardiner 
Good question  
 
 
Bud Gardiner
Reply to Bud Gardiner 
** Cook's** lawyer. Apologies 




Daniel Henwell 
beer wine and liquor should be allowed in all grocery and convenience stores 
 
 
David Amos
Reply to Daniel Henwell 
I disagree 




Jack Straw 
Does anyone really believe that there is no political interference in New Brunswick? Really? 
 
 
rayma allaby
Reply to Jack Straw 
i don't .. 
 
 
Sam Brown
Reply to Jack Straw  
To Rayma Allaby....

Do you really believe in what you are saying ?

Good Day....

 
Eugene Peabody 
Reply to Jack Straw 
And this is just the latest example of awarding your friends and punishing the other guys. This is why the Tory supporters are always loyal no matter what, they expect to be rewarded at some time. 
 
 
David Amos

Reply to Eugene Peabody 
Your buddies are no better  
 
 
David Amos 
Reply to Sam Brown
I doubt it 
 
 
David Amos 
Reply to Eugene Peabody 
Oh my my 
 
 
 
 
Ralston Cadman 
Ok. Contract originally awarded under red rule. Then changed under blue rule. Wondering if the red supporter would object if it happened the other way? Not likely. Time to make this product available for whatever businesses that want to hawk it to whomever.
 
 
David Amos 
Reply to Ralston Cadman  
Alberta does it that way 



 
SW Home 
Is that Irving gas they sell. Must be just a coincidence.
Ralston Cadman  
Reply to SW Home 
David Amos 
Reply to Ralston Cadman 
Follow the money 
 
 
 
 
James Johnstone   
It is amazing how one word with six letters affects this province. That word starts with an I and ends with a G. It's a very sad situation for the citizens who are not recognized by this organization. 
 
 
MR Cain
Reply to James Johnstone
As the 2nd largest employer in the province, plenty of citizens are recognized. 
 
 
James Johnstone
Reply to MR Cain  
So we should give them free reign, give them rights to all business that they desire, stamp out their competition and allow them to control the province. Interesting! 
 
 
MR Cain
Reply to James Johnstone  
Your story, not mine. 
 
 
Dan Lee 
Reply to MR Cain    
ahhh bud they are only words but they do tell the truth 
 
 
MR Cain
Reply to Dan Lee 
Only part of the truth
 
 
David Amos 
Reply to Dan Lee  
Two peas in a pod 
 
 
David Amos 
Reply to James Johnstone
History has proven that fact   
 
 
Shawn Tabor 
Reply to David Amos  
A very true fact. Undisputed completely. Common knowledge if you pay attention.  




Samual Johnston 
"...spent $800,000 renovating, at N.B. Liquor's suggestion." that is different than the video where the reporter says the money was spent to meet the commissions recommendations and he did what they asked. Who spends $800,000 on a suggestion when the contract is up in a couple years with out something in writing? Now if the traffic survey complaint is true and to would have changed the result he has a great case. He should focus on the facts though not the politics that cannot be proven. - like did the original contract get awarded because the prev owner was liberal ? 
 
 
Samual Johnston  
one owner was liberal one owner was conservative - well that pretty much sums up the Province --not exactly a smoking gun.  
 
 
Dan Lee
Reply to Samual Johnston  
but one was i.r.v..i.n.g 
 
 
David Amos

Reply to Dan Lee
They enjoy my blog 
 
 
David Amos
Reply to Samual Johnston 
The result of the lawsuit should be very interesting indeed 
 
 
 
 

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