Moosehead Sues City For $1.6-Million Over Well Water Changes
SAINT JOHN – Moosehead Breweries is suing the City of Saint John to recover costs associated with modifying its operations to treat municipal water from a new well that doesn’t have enough capacity.
The claim to recover costs of more than $1.6-million was filed in the Court of Queen’s Bench on Thursday afternoon.
The company says it was ordered to take its production water from the new South Bay well field despite numerous requests to use lake-source water from East Saint John instead.
Moosehead Breweries says it repeatedly explained to the city that water from the South Bay well field was not compatible with its brewing equipment and processes and that significant funds would be required to modify the brewing operation if it had to use the well water.
These requests were turned down by the city.
The investments were made and last March the city reversed its position regarding the South Bay well field and informed the company they would be getting water from East Saint John as originally requested.
The company says the claim alleges misrepresentations and negligence on the part of the City regarding a failed well-water transition strategy.
In a release, Patrick Oland, Moosehead’s chief financial officer, said the company is disappointed it had to resort to legal action, but the city’s actions left it no choice.
“We were forced to spend money earmarked for other important programs while our pleas to the city went unheeded,” he said. “It is now clear that the money the city forced us to spend is wasted because the new well system is a failure.”
Moosehead officials said because this is a legal issue they will not be conducting interviews or making further statements.
After a request for comment, the City of Saint John said via email they are aware of the claim and has shared it with its insurers. The City expects the insurers to defend the claim and appoint legal counsel shortly.
Tamara Steele is a reporter with CHSJ/Country 94, a Huddle content partner.