In 1401380 Ontario Ltd. v. Wasaya Airways LP and Hydro One Remote Communities Inc., the Ontario Superior Court of Justice ruled on a contract dispute involving fuel delivery to remote First Nations communities in Northern Ontario.

Summary:

• Plaintiff: 1401380 Ontario Ltd. (Wilderness North Air), an air charter service delivering fuel.
• Defendants:
  • Wasaya Airways LP, a First Nations-owned airline.
  • Hydro One Remote Communities Inc. ("Remotes"), responsible for electricity supply in remote areas via diesel generators.

In 2015, Wilderness North won contracts to deliver fuel to Primary and Secondary Communities. Wasaya, which lost the bid, influenced its owner First Nations to issue Band Council Resolutions (BCRs), preventing Wilderness from delivering fuel. As a result, Hydro One reassigned contracts to Wasaya and another vendor, Cargo North.

Wilderness sued Hydro One for breach of contract, seeking $6.9 million in damages, and sued Wasaya for inducing the breach, seeking $1 million.

Court’s Findings:

1. Hydro One breached its contract by reassigning fuel delivery for the Primary Communities and failed to act in good faith.
2. Wasaya induced the breach by encouraging communities to block Wilderness.
3. Damages awarded: $2.7 million against Hydro One and $856,458 against Wasaya, jointly with Hydro One.

This case highlights the tension between contractual obligations and First Nations' rights to control access to their lands.