Garbage and recycling firm files $67M lawsuit against city

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This article was published 25/06/2018 (2412 days ago), so information in it may no longer be current.

The firm that used to collect garbage and recyclables across Winnipeg is filing a $67-million lawsuit against the City of Winnipeg.

In a statement of claim filed Monday in Court of Queen’s Bench, Emterra Environmental says the city breached its contract and did damage to the company when it failed to meet its obligations, cut corners and changed the scope of work mid-contract.

“The defendant (City of Winnipeg) has treated the plaintiff (Emterra) in a high-handed, unethical and dishonest manner,’’ the statement filed by Tapper Cuddy LLP alleges. “It has blamed (Emterra) for its own errors and mistakes and its steadfast refusal to come to terms with its own errors that was to its knowledge, which is both embarrassing and massively expensive for (Emterra). The (city) knew the millions of dollars in fines and penalties were unsustainable and unjustifiable.’’

Emterra alleges it incurred millions of dollars in fines that were the direct result of actions by city officials, including:

• Failing to supply correct data that would be used for route sequencing and equipment and labour planning;

• Purchasing garbage and recycling carts that failed the city’s own specifications;

• Assessing punitive penalties without allowing due process and refusing to participate in the appeal and dispute settlement mechanisms contained in the contract;

• Changing the scope of work without notifying Emterra but expecting the company to absorb the work without additional compensation.

The allegations have not been proven in court and no court dates have been set.

A civic spokeswoman said the city would not comment, as the matter is before the courts.

Emterra was awarded a five-year contract in spring 2012 for the city’s new curbside waste and recycling pickups using the large blue and grey rolling bins. The service was quickly mired in chaos, with repeated late pickups across the city and the blame appeared to be focused on Emterra.

Emterra was penalized for the work, but the dollar amount was never disclosed.

However, in the statement of claim, Emterra states city hall withheld “payment of millions of dollars in penalties,” which Emterra alleges was the result of faulty information provided by city hall.

The court document alleges the total amount of penalties imposed by the city during the five-year term amounted to more than $6.2 million.

The documents state that city hall repaid Emterra $4.1 million in penalties in October 2013, with new terms for future breaches of the contract which Emterra alleges city hall continued to violate.

Among other allegations, Emterra said city hall purchased poorly made rolling bins that are easily damaged and insisted Emterra be responsible for all bin repairs or replacements.

aldo.santin@freepress.mb.ca