Ottawa files lawsuit in dispute over broken northern Manitoba rail line
Ottawa filed a lawsuit against the owners of a broken rail line in northern Manitoba on Tuesday, hours after the company said it would file a complaint against the federal government under the North American Free Trade Agreement.
The legal salvos are the latest in a battle over the damaged track that is the only land link to Churchill, a town of 900 on the western coast of Hudson Bay.
The community has experienced rocketing food and fuel costs since being cut off.
The federal lawsuit alleges Denver-based Omnitrax has failed to repair and maintain the rail line in violation of a 2008 agreement that saw the company receive $18.8 million in federal aid for maintenance and upgrades. The lawsuit seeks repayment of the money.