THUNDER BAY -- The Victoria Inn has launched a $1 million lawsuit against WestJet Airlines, accusing the airline of breach of contract.
The city hotel filed the claim in the Ontario Superior Court of Justice, saying WestJet broke a three-year pact negotiated in May 2013 that would have the Victoria Inn provide accommodations for flight crews during layovers.
In the lawsuit the Victoria Inn alleges it entered into the deal with the Calgary-based airline and LJK Companies of Minnetonka, Minn. following a competitive bidding process. However, a short time later the manager of the hotel was asked to renegotiate the deal after one of the bidders came back with a lower offer.
The request was denied and then the Victoria Inn says the contract was terminated by the WestJet, due to accusations of safety concerns with the hotel. In the legal proceedings the hotel manager says there were no prior mentions of safety concerns.
The Victoria Inn is seeking $1.1 million in general damages, in addition to $200,000 in punitive damages.
Both sides declined to comment on the case and none of the claims have been proven in court.