A high-stakes legal showdown over the Inuvik High Point Wind Project’s access road now puts Liberty Mutual and contractor ONEC Construction on the hook for potential damages, as the Supreme Court of the Northwest Territories orders a trial to quantify losses arising from unpaid invoices, bond disputes, and fractured construction contracts.
Justice Annie Piche ruled that ONEC and Liberty Mutual Insurance Co. are liable to Northland for contractual damages but said a trial is required to determine the amount. She also ordered ONEC and Liberty to pay Northland party and party costs in any event of the cause.
ONEC and Liberty had originally taken Northland and NWT Energy to court, alleging Northland induced contract breaches, damaged equipment and stole fuel. Piche dismissed those claims, noting no evidence was filed. Northland responded with a counterclaim for unpaid expenses.
Construction of the access road began in 2022, with Northland submitting monthly invoices to ONEC. By September that year, Northland issued a notice of default for unpaid invoices. On Nov. 9, 2022, ONEC instructed Northland to stop work due to its dispute with NWT Energy.
Northland ended its contract in January 2023, citing outstanding payments. NWT Energy also terminated its contract with ONEC and on Feb. 10, 2023, informed Northland it could make a claim under a Liberty bond. Northland submitted the claim on March 3, but Liberty denied it. ONEC filed its claim in April 2023, and Northland filed its counterclaim in September.
Rob Adams, president of Northland and former president of Northern operations at ONEC from Feb. 1, 2021, to June 20, 2022, is central to the case. ONEC argued his dual roles tied Northland to ONEC’s termination by NWT Energy. Piche found that Adams signed the contract in his capacity with ONEC.
Court documents stated that Northland’s participation was needed to secure the contract, as it is a Gwich’in-owned business and the involvement of Gwich’in firms was important for obtaining the agreement.
Invoicing disputes also arose. Northland billed flat rates rather than itemized costs, and Adams’ timesheets lacked dates and hours. ONEC CEO Denis Wiart testified Adams invoiced 14 to 16 hours per day from March to October 2022, including a vacation day exploring the Mackenzie River. Piche ordered a trial to quantify damages.
Background reporting showed ONEC Nations Ltd., responsible for Indigenous partnerships, listed false addresses in Inuvik and Yellowknife on its website as of May 12, 2022, with Adams identified as president.
Piche also ruled Northland must pay outstanding balances to NWT Energy, which owns the project through NT Hydro, wholly owned by the territorial government.
