A long-standing legal dispute between Yukon Energy Corporation and the company it hired to design and build the Mayo to Dawson transmission line has been resolved. The out of court settlement sees Yukon Energy paying Chant Construction $3 million.
“I am relieved to finally have this dispute settled,” Yukon Energy president David Morrison said. “The court process set up to deal with the dispute had a 12-month trial scheduled to begin in November 2010. A costly and drawn out court process would not have benefited anyone. Without a settlement the legal process would have lasted another two-and-a-half years, costing Yukon Energy several million dollars in legal fees alone. I think it’s far better for Yukoners that we have resolved this dispute and put the issues to bed.”
The $3 million was not be paid by Yukon ratepayers. Instead, Yukon Energy’s parent, Yukon Development Corporation, covered the cost.
Construction of the 232-kilometre line from the Mayo hydro generating station to Dawson City started in June 2001. The transmission line was to have been completed in November 2002, but a dispute between Yukon Energy and Chant delayed completion until September 2003. Yukon Energy later filed claims against Chant totaling $9.5 million, and Chant filed counter-claims of $21 million against Yukon Energy.
Contact:
Janet Patterson
Supervisor, Communications
Yukon Energy Corporation
(867) 393-5333
janet.patterson@yec.yk.ca
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