The court found that Empire Steel Inc. breached its sublease with AZZ Galvanizing Canada Limited by overcharging for hydro, contrary to the contractual requirement to pass on only the actual cost of utilities.
Empire’s attempt to justify the overcharges by reference to alternative agreements and a retroactive TMI reconciliation was rejected as lacking credibility and good faith.
The court awarded AZZ $418,876 for hydro overcharges, subject to a $20,000 set-off for outdoor storage, and dismissed all other counterclaims and crossclaims.
