Fisheries and Oceans Canada
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STATEMENT
CHS/NDI AGREEMENT
Termination/Bankruptcy Proceedings in Newfoundland court/Federal Court Claim
On January 4, 2005, the Department of Fisheries and Oceans (DFO) sent a letter to NDI, terminating the Canada/NDI Agreement, effective February 4, 2005.
On February 2, 2005, NDI filed a notice of intention to file a bankruptcy proposal in the Supreme Court of Newfoundland and Labrador (Trial Division) (in Bankruptcy and Insolvency).
On Feb. 3, 2005, NDI filed a statement of claim in the Federal Court against DFO for damages in the amount of $109 million, plus $5 million in punitive damages with regard to the termination of the Canada/NDI Agreement.
On February 10, 2005, NDI obtained an ex parte order from the Honourable Mr. Justice Robert Hall of the Supreme Court of Newfoundland and Labrador restraining DFO from terminating and/or breaching the Canada/NDI Agreement, provided that CHS is permitted to come back to the court upon five days prior notice for an application to set aside Mr. Justice Hall's order.
On February 23, 2005, DFO filed a notice of motion to set aside Mr. Justice Hall's order.
On March 10, 2005, Justice Hall granted two variances to the February 10, 2005 order:
- requiring NDI to provide weekly royalty statements and payments to CHS by certified cheque starting March 11 ; and
- providing that the February 10, 2005 order is to remain in effect until either NDI's bankruptcy, or approval of NDI's proposal by its creditors or until the court orders otherwise.
DFO's motion to set aside Justice Hall's Feb. 10 order was heard on April 12-13, and dismissed on May 10, 2005. DFO is appealing this decision.
On May 13, 2005, Justice Hall allowed NDI a further extension of 20 days for filing its bankruptcy proposal.
Access To Information Act
On the multiple Access to Information Act (ATIA) requests for copies of the Agreement and related documents received by DFO, NDI brought six s. 44 ATIA applications against DFO in the Federal Court opposing release of the Canada/NDI agreement.
DFO and NDI have settled all six cases in the Federal Court, so the Canada/NDI Agreement will be released to those requestors, subject to certain exemptions.
If you have any questions, please contact Savi Narayanan, A/Director General, Canadian Hydrographic Service. Her coordinates are:
