The plaintiff, Wilderness North Air, was awarded a contract by Hydro One Remote Communities Inc. (Remotes) to be the primary vendor for the delivery of diesel fuel by air to five remote First Nations communities.
After the contract was awarded, several First Nations communities issued Band Council Resolutions (BCRs) stating they would only accept fuel delivered by Wasaya Airways, a First Nations-owned airline that had been unsuccessful in the bidding process.
Remotes subsequently cancelled Wilderness's purchase orders for four of the communities and awarded the work to Wasaya and another carrier.
Wilderness sued Remotes for breach of contract and breach of the duty of good faith, and sued Wasaya for inducing breach of contract.
The Superior Court of Justice found that Remotes breached the contract and its duty of good faith, and that Wasaya induced the breach.
Wilderness was awarded $2,718,988 in damages, with Wasaya jointly and severally liable for $856,458.
