After looking at Horizon’s lawsuit, city officials say they're not backing down and won’t be intimidated.
City manager Tim Commisso said he first heard about the $126 million lawsuit against the city Tuesday afternoon when contacted by local media. After reviewing Horizon’s statement of claim to the Ontario Superior Court of Justice, Commisso said the city has already complied with Horizon’s main claim, executing the lease.
A copy of the statement of claim obtained by tbnewswatch, shows Horizon is seeking $100 million in damages for misrepresentation, breach of contract, breach of the city’s duty of good faith, wrongful interference with economic interests and lost opportunity if the lease is not executed.
But Commisso said city council did just that when they approved 14 of 18 turbine locations early Tuesday morning. Horizon is also overlooking an alternative in the lease which allows for an arbitration process on turbine locations Commisso said.
"In effect they’ve already made the decision where they did approve executing the lease," Commisso said. "The locations of the turbines is obviously an issue but in lease there is option for arbitration when there is dispute with location."
A further $25 million is being sought by Horizon for punitive, aggravated and exemplary damages. The remaining $1 million is for a breach of a non-disclosure agreement between the city and Horizon Oct. 6 for leaking confidential information to the media.
The statement also claims that the city approached members of Fort William First Nations in June to ask whether they would stop the project. While discussions were held between the city and FWFN, Commisso said that claim is not true.
"I will categorically deny that there was any approach to Fort William First Nations to not support the project," Commisso said.
Horizon also claims that the city bowed to political pressure from Neebing residents, Loch Lomond Ski Area and members of the Nor’Wester Mountain Escarpment Protection Committee because of the upcoming municipal election.
NMEPC member Karl Piirik said he’s surprised by the $126 million suit and doesn’t know why Horizon would mention the committee specifically.
"I guess people speaking up to their own representatives on council I would think that would be a normal thing," Piirik said. "I think there have been people all over the city who have spoken up."
City Solicitor Rosalie Evans said the city will have external legal counsel file a defense within 20 days.
