Northland Builders is eligible for outstanding expenses from ONEC Construction Inc. and Liberty Mutual Insurance Company SA国际影视传媒� but a trial must be held to determine how much.
Court documents detailing the Aug. 6 decision by NWT Supreme Court Justice Annie Piche shed light on the construction of the Inuvik High Point Wind Project access road and the breakdown of the troubled business relationship between ONEC, NWT Energy Corporation and Northland.
"Northland has proven that ONEC and Liberty are liable to pay contractual damages," Piche's verdict reads. "However, because there is conflicting evidence on material facts and the necessity to reach findings of credibility, I conclude that there is a genuine issue that requires a trial on the scale of damages.
"ONEC Construction Inc. and Liberty Mutual Insurance Company shall pay Northland Builders Ltd. party and party costs in any event of the cause."
ONEC and Liberty had initially taken Northland and the NWT Energy Corporation to court, claiming Northland persuaded other parties to breach the contract, damaged equipment and stole fuel. However, Piche noted that ONEC did not submit any evidence to prove its claims and tossed them out. Northland filed a counterclaim for outstanding business expenses.
Background information included in the judgment indicates that construction of the access road began in 2022 with Northland sending monthly invoices to ONEC. However, by September 2022, Northland sent a notice of default to ONEC for outstanding payments. ONEC directed Northland to stop work on the road on Nov. 9, 2022, due to an ongoing dispute between ONEC and the NWT Energy Corporation.
In January 2023, citing outstanding payments, Northland terminated its contract to build the road with ONEC. NWT Energy Corporation also terminated its contract with ONEC and notified Northland on Feb. 10 it may be eligible to make claim under a bond issued by Liberty Mutual. Northland submitted this claim to Liberty Mutual on March 3, but it was subsequently denied. ONEC filed its claim against Northland in April and Northland filed a counterclaim in September.
At the centre of the claims was Northland president Rob Adams, who was also president of Northern operations of ONEC from Feb. 1, 2021 to June 20, 2022. ONEC argued that the fact Adams had signed the contract to construct the access road meant when NWT Energy Corporation fired ONEC, Northland was dismissed as well. However, Piche noted Adams' title on the contract is his position with ONEC.
Piche added that during the trial, both parties explained Northland's participation was needed to secure the contract, as Northland is a Gwich'in-owned business and "the prominent role of Gwich'in businesses was key to obtaining this contact."
SA国际影视传媒 previously reported ONEC Nations Ltd., which ONEC's website stated was responsible for the company's Indigenous partnerships, had listed false addresses in Inuvik and Yellowknife on its website as of May 12, 2022. Rob Adams was listed as president of ONEC Nations Ltd. at that time.
Piche dismissed ONEC and Liberty Mutual's claims against Northland and ruled that the two plaintiffs were liable for outstanding expenses. However, she concluded that a trial must be held to determine the extent of those expenses. She noted that ONEC CEO Denis Wiart had told Adams he needed to provide more information to support the invoices Northland was submitting before the breakdown of the contract, as Northland was submitting flat rates for costs instead of itemized invoices.
"Northland's invoicing for the cost of labour is also in dispute," wrote Piche. "For example, Northland charged ONEC for work performed by Mr. Adams for 14 to 16 hours a day, every day from March 2022 to some time in October 2022."
Piche stated that the timesheets Adams submitted at the court's request were invoices without dates and times. Wiart also testified he visited Inuvik in July 2022 and Adams took him on a vacation day to explore the Mackenize River, but Adams invoiced ONEC for a 14-hour day for that trip.
"The monthly flat rates charged for project support services and for shop and utility expenses and the costs of labour are examples that show there is conflicting evidence related to Northland's invoicing," Piche found. "I order a trial on the quantification of damages."
Northland must also pay outstanding balances to NWT Energy Corporation, the judge ruled. NWT Energy Corporation is the owner of the Inuvik High Point Wind project and access road. It is owned by NT Hydro, which is wholly owned by the Government of the Northwest Territories.
