School district, not Kelloway, broke a contract: countersuit

Newfoundland and Labrador's English School District, not Kelloway Investments, is the one who improperly broke a contract in 2015, the busing company claims.

KellowayInvestments filed a counter lawsuit in provincial court on Jan. 20, along with a defense to a suit previously filed by the school district.

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The company claims that just a few days into the 2015-2016 school year, the school district improperly cancelled a contract it had agreed to for busing at Gonzaga High School.

The contract was worth about $5,690 monthly. It was cancelled on Sept. 14, 2015, according to Kelloway, after the service was delivered on Sept. 9, 10 and 11.

"The Defendant states that the Plantiff breached the GonzagaContract without cause and refused to refund the Defendant's bid deposit," Lawyers for Kelloway wrote.

The claims have not been proven in court.

Defense filed

The school bus company also defended itself in the lawsuit filed by the school district in August 2016.

The English School District says the company refused to enter into contracts after it won tenders for them in 2015. As such, the school district claims Kelloway is on the hook for the cost of the difference between Kelloway and the next highest bidder.

But in their statement of defense, Kelloway says that was never a conditionwhen they submitted their bid.

The company also wrote that it did not refuse to enter ninecontracts. It said it was unable to get into the contract because it wasn't able to get appropriate buses.

"The Defendant states it was prevented from, or unable to, carry out its obligations under the contracts due to supervening events beyond it's control," lawyers wrote.

"Namely the inability to procure the appropriate buses consistent with the specifications of the Contracts."

Kellowaywrote that a legal precedent about frustrated contracts means it should not be held liable.

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