Port Hawkesbury Paper fighting U.S. company in lawsuit

Port Hawkesbury Paper is denying it breached a contract with American companyBengal Paper and says it will continue to fight the legal battle.

Lawsuits and counter suits have been filed in the lawsuit between the two companies.

According to documents filed in Nova Scotia Supreme Court, Port Hawkesbury Paper sued first.It accusedBengal of not paying for paper it ordered andwants $450,000.

Bengal Paper claims Port Hawkesbury Paper failed to deliver the full order, leaving it unable to meet client orders.

Port Hawkesbury Paper now states thatany damage to Bengal resulted from itsown wrongful actions.

No dates have been set for a hearing.

The Port HawkesburyPaper mill produces 400,000 tonnes of glossy paper a year.

That paper is used inmagazines and catalogues.

About 750 people are employed with the mill.