B.C. shipyard embroiled in legal battle over New Zealand warship upgrades
A legal battle is brewing between two of Canada's largest defence contractors over upgrades to a pair of New Zealand navy warships in British Columbia.
The companies, Lockheed Martin Canada and Seaspan Shipyards, were contracted by the New Zealand government to install new combat and surveillance systems aboard Her Majesty's New Zealand ships Te Mana and Te Kaha.
The ships comprise the entirety of New Zealand's frigate fleet and the upgrades are intended to extend the life of the warships into the mid-2030s.
But last year, Seaspan's Victoria Shipyards, which was subcontracted by Lockheed to perform the work, filed a civil claim in B.C. Supreme Court alleging that problems with the Lockheed designs were costing the shipyard more than $20 million in delays and workarounds on the first ship alone.
Lockheed Martin Canada responded with a counterclaim, saying the project delays were due to negligence, understaffing and mismanagement at the shipyard. Lockheed said the issues had set the company back more than $10 million per ship as of last July.
"The plaintiff [Victoria Shipyards] has acted in bad faith, comes to the court with unclean hands and is not entitled to an equitable remedy," lawyer Neil Abbott wrote in response to the shipyard's claim.
Lockheed Martin Canada also disputed Seaspan's claim that the Victoria shipyard was selected for the project because of its previous success in upgrading the combat systems on Canada's warships under the domestic frigate modernization and life-extension program.
"Rather, New Zealand knew that LMC [Lockheed Martin Canada] was the leading provider of vessel weapons upgrade systems," Abbott wrote. "LMC felt that New Zealand would more likely award the ANZAC project to LMC if the work would be carried out at a shipyard in another Commonwealth country."
Both ships were due to return to New Zealand from Victoria last year.
The upgraded Te Kaha was to be returned by the end of March 2020 but delays prolonged its handover until December. The Te Mana remains in Victoria and is now expected to return to New Zealand in April 2022, exactly eight years after the contract was awarded.
A spokesperson for the New Zealand Defence Force declined to comment on the force's confidence in the upgrades or the effects of the program's delays on naval operations, citing the ongoing court proceedings.
Lockheed Martin Canada declined to comment on the case, citing the ongoing litigation. Seaspan did not respond to a request for comment.
According to Seaspan, the New Zealand frigate program marks the first time a foreign warship has undergone modernization in Canada since the Second World War.
The matter is set to go to a hearing in mid-November.
CTVNews.ca Top Stories
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
After hearing thousands of last words, this hospital chaplain has advice for the living
Hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words, and shares his advice for the living.
WHO likely to issue wider alert on contaminated cough syrup
The World Health Organization is likely to issue a wider warning about contaminated Johnson and Johnson-made children's cough syrup found in Nigeria last week, it said in an email.
WATCH Video shows dramatic police takedown of carjacking suspects chased through parking lot north of Toronto
Police have released video footage of a dramatic takedown of a group of teens wanted in connection with an attempted carjacking in Markham earlier this month.
Canada, G7 urge 'all parties' to de-escalate in growing Mideast conflict
Canada called for 'all parties' to de-escalate rising tensions in the Mideast following an apparent Israeli drone attack against Iran overnight.
'It was all my savings': Ontario woman loses $15K to fake Walmart job scam
A woman who recently moved to Canada from India was searching for a job when she got caught in an online job scam and lost $15,000.
Families to receive Canada Child Benefit payment on Friday
More money will land in the pockets of some Canadian families on Friday for the latest Canada Child Benefit installment.
After COVID, WHO defines disease spread 'through air'
The World Health Organization and around 500 experts have agreed for the first time on what it means for a disease to spread through the air, in a bid to avoid the confusion early in the COVID-19 pandemic that some scientists have said cost lives.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.