SUBBOR to Pay City of Guelph $2.5 Million

The following media release was sent out this evening…

 

SUBBOR to pay City of Guelph $2.5 million
Settlement brings successful conclusion to court battle with SUBBOR, avoiding need for future court proceedings.

GUELPH, ON, November 23, 2009 – The City of Guelph will receive $2.5 million in legal costs from SUBBOR (Super Blue Box Recycling Corporation) and its parent company Eastern Power Limited. The award is part of a settlement between the City and the two companies that comes after the Ontario Superior Court and the Ontario Court of Appeal have already ruled in the City’s favour. Guelph City Council ratified the settlement at tonight’s meeting.

SUBBOR and Eastern Power Limited will pay the City of Guelph $2.5 million in instalments, with interest payable in the event of any default in payment.

Other aspects of the settlement include SUBBOR and Eastern Power Limited’s agreement to surrender all rights to the SUBBOR building — which is located on the site of Guelph’s Waste Resource Innovation Centre — and the land on which it resides.  The companies have 90 days to remove their equipment from the site, not far from where excavation is currently underway in preparation for Guelph’s new Organic Waste Processing Facility.

“We are extremely pleased the City has reached a settlement with SUBBOR and Eastern Power Limited, eliminating the need for further court proceedings,” Guelph’s mayor Karen Farbridge said on behalf of City Council.  “The settlement is a good one for the City, bringing successful finality to what has been a long ordeal.”

Both the Superior Court of Justice and the Court of Appeal found in favour of the City of Guelph after SUBBOR launched a lawsuit against the City in 2003, claiming $32 million in damages for an alleged breach of contract. In 2007 the Court dismissed SUBBOR’s claim and awarded full costs to the City. The Court of Appeal upheld the Superior Court’s decision and the awarding of costs against SUBBOR and Eastern Power Limited.  SUBBOR’s appeal was dismissed on all counts on June 16. The City of Guelph has already been awarded and has been paid $100,000 for its costs related to the appeal.