CP disappointed in Court of King's Bench of Alberta ruling in favor of Remington Development Corporation involving Calgary land sale, will appeal decision

Rhea-AI Summary

Canadian Pacific (TSX: CP) expressed its disappointment in a recent ruling from the Court of King's Bench of Alberta regarding a breach of contract with Remington Development Corporation over a Calgary land sale. The court ordered CP to pay $163,707,836 in damages, stating significant legal and factual errors in its judgment. CP plans to appeal, asserting strong grounds for the appeal and commitment to contest the decision vigorously.

Positive

• CP intends to appeal the ruling, demonstrating proactive risk management and commitment to its interests.

Negative

• The court ruling requires CP to pay damages of $163,707,836, impacting financial resources and potential shareholder value.
• The decision indicates a breach of contract, which can lead to reputational damage and future legal challenges.

CALGARY, AB, Oct. 22, 2022 /PRNewswire/ - Canadian Pacific (TSX: CP) (NYSE: CP) today said it would appeal a decision issued by the Court of King's Bench in the case of Remington Development Corporation v Canadian Pacific Railway Company and His Majesty the King in Right of Alberta, as represented by the Minister of Infrastructure and the Minister of Transportation.

CP was surprised and disappointed at this judgement, which CP considers to contain significant legal and factual errors related to both liability and damages. CP has strong grounds for appeal and will vigorously fight this decision.

On Oct. 20, 2022, the Court of King's Bench of Alberta issued a 200-page decision saying CP was in breach of a 2002 contract with Remington Development Corporation involving the sale of land in Calgary, Alta. to the Province of Alberta. The decision states that Remington is entitled to $163,707,836 in damages from CP and the Province of Alberta, but did not indicate how the damages should be apportioned. 

About Canadian Pacific

Canadian Pacific is a transcontinental railway in Canada and the United States with direct links to major ports on the west and east coasts. CP provides North American customers with a competitive rail service with access to key markets in every corner of the globe. CP is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpr.ca to see the rail advantages of CP. CP-IR

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SOURCE Canadian Pacific

FAQ

What was the court ruling against Canadian Pacific about?

The ruling involved a breach of contract with Remington Development Corporation regarding a Calgary land sale.

How much is Canadian Pacific ordered to pay in damages?

Canadian Pacific is ordered to pay $163,707,836 in damages.

When did Canadian Pacific announce the appeal of the court ruling?

Canadian Pacific announced its intention to appeal the ruling on October 22, 2022.

What are Canadian Pacific's grounds for appeal?

Canadian Pacific considers the judgment to contain significant legal and factual errors.

What impact does this court ruling have on Canadian Pacific's finances?

The ruling poses a potential financial burden due to the substantial damages awarded.