Churchill Falls (Labrador) Corporation files appeal application with the Supreme Court of Canada on the Good Faith case
October 3rd, 2016
On Friday, September 30, 2016, Churchill Falls (Labrador) Corporation (CF(L)Co) filed an application for leave to appeal with the Supreme Court of Canada on the decision it received from the Quebec Court of Appeal on August 1, 2016, regarding the disparities of the 1969 Power Contract and the associated Renewal Contract between CF(L)Co and Hydro-Québec (referred to as the Good Faith case).
In 2010, CF(L)Co filed a motion with the Quebec Superior Court requesting an amendment to the pricing terms of the Power Contract and the Renewal Contract to permit a more equitable sharing of the value of the power from Churchill Falls. The Court ruled against CF(L)Co and in August 2014, CF(L)Co filed an appeal of the Quebec Superior Court’s decision with the Quebec Court of Appeal. On August 1, 2016, the Quebec Court of Appeal issued its decision, ruling against CF(L)Co.
Following a comprehensive review of this judgment and advice from its legal counsel, CF(L)Co has decided there are serious grounds to seek leave to appeal the decision to the Supreme Court of Canada.
Under the Power and Renewal Contracts energy generated from the Churchill Falls Generating Station in Labrador is sold to Hydro-Québec. The 1969 Power Contract expired on August 31, 2016 and the Renewal Contract came into effect September 1, 2016 and is in effect for 25 years.