Saskatchewan tire recycler suing province for $10M over multiple year contract dispute
CTV
A Saskatoon rubber manufacturer is taking the province to court, claiming millions of dollars in damages for breach of a contract as part of a dispute that's lasted more than two years.
A Saskatoon, Sask. rubber manufacturer is taking the province to court, claiming millions of dollars in damages for breach of a contract as part of a dispute that's lasted more than two years.
In a lawsuit filed at Court of King's Bench last Friday, Shercom Industries is seeking at least $10 million in damages against the Government of Saskatchewan, the Tire Stewardship of Saskatchewan (TSS), a non-profit provincial regulator, and its chief executive officer Stevyn Arnt.
The statement of claim argues Shercom was unfairly excluded from a request for proposals to award a second tire recycler in Saskatchewan, and argues negotiations were "predetermined and locked into awarding" services to an American based company instead.
The lawsuit also seeks damages against Arnt for a series of claims and comments he's allegedly made over the last two years, which Shercom argues are false statements that caused economic harms meant to shutter the company.
"Shercom further states that in maligning Shercom, excluding it from a tire processing contract, and depriving it of Saskatchewan-sourced processed scrap tires, Stevyn Arnt and/or TSS intended to cause maximum harm to Shercom and put it out of business," the lawsuit reads.
"At all times, TSS has conducted itself in an arrogant, high-handed and shocking fashion, callously indifferent to the economic harm it has caused Shercom."
Shercom began operations just north of Saskatoon in 1993, and for years was the province's only scrap tire recycler, in charge of recycling every used tire purchased in Saskatchewan.
