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
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Which foods have the most plastics? You may be surprised
'How much plastic will you have for dinner, sir? And you, ma'am?' While that may seem like a line from a satirical skit on Saturday Night Live, research is showing it's much too close to reality.
opinion I've been a criminal attorney for decades. Here's what I think about the case against Trump
Joey Jackson, a criminal defence attorney and a legal analyst for CNN, outlines what he thinks about the criminal case against Donald Trump in the 'hush money trial.'
$3.8M home in B.C.'s Okanagan has steel shell for extra wildfire protection
A home in B.C.'s Okanagan that features a weathering steel shell designed to provide some protection against wildfires has been listed for sale at $3.8 million.
Diver pinned under water by an alligator figured he had choice. Lose his arm or lose his life
An alligator attacked a diver on April 15 as he surfaced from his dive, nearly out of air. His tank emptied with the gator's jaws crushing the arm he put up in defence.
Psychologist becomes first person in Peru to die by euthanasia after fighting in court for years
A Peruvian psychologist who suffered from an incurable disease that weakened her muscles and had her confined to her bed for several years, died by euthanasia, her lawyer said Monday, becoming the first person in the country to obtain the right to die with medical assistance.
Mystery surrounds giant custom Canucks jerseys worn by Lions Gate Bridge statues
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
Celebrity designer sentenced to 18 months in prison for smuggling crocodile handbags
A leading fashion designer whose accessories were used by celebrities from Britney Spears to the cast of the 'Sex and the City' TV series was sentenced Monday to 18 months in prison after pleading guilty in Miami federal court on charges of smuggling crocodile handbags from her native Colombia.
Wildfire leads to evacuation order issued for northeast Alberta community
An evacuation order was issued on Monday afternoon for homes in the area of Cold Lake First Nation.