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Churchill Falls (Labrador) Corporation receives Quebec Superior Court decision on the 1969 Power Contract

Press Release –

July 25, 2014, St. John’s, NL – Yesterday afternoon, Churchill Falls (Labrador) Corporation (CF(L)Co) received the judgment from the Quebec Superior Court on the motion it filed in February 2010 regarding the disparities of the 1969 Power Contract between CF(L)Co and Hydro-Québec.

Prior to undertaking this process in November 2009, both the Government of Newfoundland and Labrador and CF(L)Co sought extensive legal advice from leading legal advisors within the Province of Quebec. The eminent legal and scholarly advice received by CF(L)Co was, and still is, that the fundamental essence of the company’s case, based on the continual obligation of Good Faith in the execution of contracts in the Quebec Civil Code, is well founded.

CF(L)Co is disappointed with the judgment rendered by the trial judge in dismissing its claim.

“We respectfully disagree with the judge’s ruling and more so have a grave concern that he did not address the essence of our argument that the duty of good faith requires renegotiation of the pricing terms of the Power Contract in the circumstances of this case,” said Ed Martin, President and CEO, CF(L)Co.

“When we made a decision to proceed with this case before the Quebec Superior Court in 2010, we anticipated that either party would appeal the judgment to the higher courts given the significance of this case. We have instructed our legal team to commence preparation for an appeal following a comprehensive review of the decision received yesterday,” stated Martin.

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Media Contact:

Karen O’Neill
Communications, Nalcor Energy
t.709.737.1427 c.709.690-2012
[email protected]

Click to read the backgrounder.
Click to read the decision.

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