BC log exporter sues over shipment gone bad

Wednesday 18 Oct 2017

British Columbia log exporter sues Chinese owned supplier over bad shipment, failure to pay federal deductions - British Columbian log exporter Northcrest Energy Corp is suing the BC subsidiary of a Chinese company over allegations the company duped the exporter into financing its operations to supply logs to a customer in China and delivered inferior product.

In a statement of claim filed with the Supreme Court of BC in New Westminster, Northcrest president Baljit Gill said representatives of the supplier, Richmond- headquartered Canada Forest Industrial Group Ltd., led her to believe that it was a substantial company with deep financial resources.

In August 2016, Gill said in the statement that she signed a contract to buy logs from Canada Forest for export to a company in China in a transaction that would see Northcrest pay Canada Forest’s employees and subcontractors for credits toward the purchase.

Under those terms, Gill said in the statement that she paid $3.2 million for payroll and camp services, but hasn’t received credit for that.

The logs were delivered to the port at Stewart for shipment overseas, according to the statement, however Gill said the order failed to meet the customer’s quality requirements, which Canada Forest has been unable to correct.

“Over the past months, it became increasingly apparent to Ms. Gill that (Canada Forest) et al. were not capable of fulfilling the contract that they had signed without her financial and management assistance,” according to the statement of claim.

In the statement, Gill said federal payroll deductions for Canada Forest’s employees and contractors had not been made and the Canada Revenue Agency subsequently seized Northcrest’s bank accounts as a result.

Gill, in the statement, is alleging that Canada Forest, along with a group of companies and their directors committed fraud against Northcrest through misrepresentations and argued that their intentions “were to avoid meeting their contractual and statutory obligations while unjustly enriching themselves.”

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Source: Vancouver Sun

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