A statement of claim citing the plaintiffs as Chinook Pipelines Inc. (Chinook) and the defendant as the Municipality of Crowsnest Pass was filed on July 20, 2012 with the Court of Queen's Bench in Lethbridge. After Chinook had confirmed this action last week, the official document was obtained by the Promoter. It is to be noted that this statement of claim contains allegations not yet proven in court.

As per the statement, Chinook is suing the Municipality of Crowsnest Pass for $420,000 worth of lost profits and damages to its reputation which Chinook hopes to prove at the trial. Further allegations include $30,000 for wasted time in preparation of a bid for the 2011 Infrastructure Improvements, interest, cost of the action and further relief as the Honourable Court may permit.

This legal action is stemming from the bid processes that were undertaken for the 2011 and 2012 Infrastructure Improvements programs put forth by the Municipality of Crowsnest Pass. Chinook states that based on the terms of the tender package for the 2011 Infrastructure Improvements, the Municipality breached a contractual relationship with Chinook by not selecting them as the winning bidder, despite their coming in at the lowest price.

Chinook also claims that the Municipality was in breach of the duty of fairness and/or good faith, especially when taking into consideration the use of public funds for these projects. They state that the 2011 Infrastructure Improvements were cancelled in order to avoid the contractual obligation to Chinook and subsequently repurposed into the 2012 Infrastructure Improvements with a new tender package.

A package which was designed to exclude all previous bidders, save for the one higher priced company which had initially been awarded the 2011 project, prior to its cancellation.

As the statement of claim says in regard to the 2012 Infrastructure Improvements tender package:

"...language was clearly calculated to exclude any bid that Chinook or others might make for this tender. Chinook fully expected that such language would be used to exclude Chinook and other bidders from successfully bidding on the 2012 Infrastructure Improvements, to award it to the higher bidder to whom the Municipality attempted to award the 2011 Infrastructure Improvements, and to thwart a free and fair tender process, making it a sham."

"...the only bidder on the tender for the 2012 Infrastructure Improvements was the higher bidder to whom the Municipality had attempted to award the 2011 Infrastructure Improvements."

CAO of the Crowsnest Pass, Myron Thompson, declined to comment at this stage and outside from confirmation that the statement of claim had been sent, so did representatives from Chinook.

Chinook, or its predecessors, have specialized in pipeline installation, utility project and oil and gas related activities throughout Alberta, British Columbia and Saskatchewan. They have bid on, been awarded and completed infrastructure projects for the Municipality of Crowsnest Pass or its predecessors throughout the past 40 years.

They are based in Pincher Creek, Alberta and more information can be found on their website, www.chinookgroup.ca.