Winnipeg towing company sues city for $10M over 'preferential treatment' of competitor during contract bid
CBC
A Winnipeg towing company has launched a lawsuit against the city, claiming municipal officials improperly awarded contracts to a competitor, costing the company more than $4 million in annual revenue.
Bison Towing alleges in a statement of claim filed with the Manitoba Court of King's Bench on Friday that the company was treated "unfairly and unequally" when it was passed over for two municipal contracts — one for Winnipeg Parking Authority awarded in April and one for the Winnipeg Police Service awarded in July 2024.
Both contracts went to Tartan Towing, a decision that Bison claims showed the city was giving "preferential treatment" to Tartan.
None of the claims have been proven in court.
Tartan first signed the contract to tow and store vehicles for the Winnipeg Police Service in 2019, covering a period of up to five years.
In 2023, the city filed a lawsuit against Tartan after a city review of invoices suggested that Tartan charged more than $1.1 million for tows that never happened. These allegations stemmed from Tartan's contracts to do courtesy tows during residential snow-clearing parking bans.
Shortly after, Tartan launched a countersuit against the city, alleging the city failed to pay more than $730,000 in towing services and left contract obligations owed to the firm unfulfilled.
Bison said in its statement of claim that it began preparing to bid for the police service towing job when the contract came up for tender last year.
The company spent more than $100,000 to upgrade their yard and indoor space to store vehicles, the claim says.
The city received three bids: one from Dr. Hook for $113,600, one from Tartan Towing for $18,500 and one from Bison Towing for $14.70.
Bison previously told CBC News it could cover the low offer with storage fees.
Bison argued in its filing that it met all the requirements and was a "qualified bidder" with the lowest bid offered to the city. Bison claims that Tartan's premises didn't meet fencing requirements, while its own lot already "exceeded the indoor space requirement."
However, Bison claims it wasn't selected for the contract because the city's contract administrator said the site didn't have enough indoor space — something Bison questions in its statement of claim.
In its claim, Bison said Tartan shouldn't have been considered for the contract in the first place.
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