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Winnipeg towing company claims deputy mayor encouraged city to breach contract in new lawsuit

A Winnipeg company is suing the city for allegedly failing to act on good faith by reneging on a towing contract, accusing the city’s deputy mayor of wrongfully interfering in the process.

Tartan Towing alleges in a statement of claim filed with the Court of King’s Bench on Jan. 31 that the city breached the contract by unilaterally refusing to negotiate an extension, and by saying the contract will be open for new bids when it’s not eligible to be retendered.

The company was awarded the contract to tow vehicles for the Winnipeg police last August for $18,480.

In November, the city announced it was putting it back out for tendering after Coun. Janice Lukes raised questions the decision to give it to Tartan, which was being sued for allegedly overcharging the city for tows related to residential snow-clearing parking bans.

The one-year-term contract gave the city the option for four further one-year extensions.

Tartan claims the city effectively ended a five-year contract within its first four months, breaching its duties by “unilaterally refusing to provide or negotiate” the extensions.

The statement of claim said Tartan had previously provided towing services for the city under similar contracts, and that it had made investments to meet the requirements of the bid in preparation to carrying it out.

The company claims the city never consulted it or gave it a chance to speak for itself before announcing it would retender.

The lawsuit also names Lukes, claiming the councillor and deputy mayor’s comments led to the breach.

None of the claims have been proven in court, and no statements of defence have been filed.

Tartan had launched a lawsuit against Lukes and Bison Towing owner Zakria Shoaib last November, alleging statements they’d made to local media related to the contract — including CBC News — were defamatory, and suggested the company had bribed officials.

A woman is pictured.
Deputy Mayor Janice Lukes said in a statement she wouldn’t comment on the lawsuit, but that it’s her job to ensure taxpayers are getting value for their tax dollars. (Warren Kay/CBC)

In a second statement of claim filed a few days later, Tartan claimed Sikh and East Indian employees had been targeted by “racially charged” mail and phone calls as a result of the allegedly defamatory comments.

Coun. Lukes said in a statement Monday she wouldn’t comment on this third lawsuit.

“To be clear, I’m not concerned about any one towing company,” she said, adding that she’s continuing to look into other contracts issued by the city, and that it’s her job to ensure taxpayers are getting value for their tax dollars.

The City of Winnipeg declined to comment on the lawsuit while the matter is before the courts.

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