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
BREAKING Louis Gossett Jr., 1st Black man to win supporting actor Oscar, dies at 87
Louis Gossett Jr., the first Black man to win a supporting actor Oscar and an Emmy winner for his role in the seminal TV miniseries 'Roots,' has died. He was 87.
Weather alerts issued for 7 provinces, 1 territory
Warnings of up to 60 millimetres of rain and other alerts have been issued for seven Canadian provinces and one territory ahead of the Easter weekend.
He didn't trust police but sought their help anyway. Two days later, he was dead
Jameek Lowery was among more than 330 Black people who died after police stopped them with tactics that aren’t supposed to be deadly, like physical restraint and use of stun guns, The Associated Press found.
Luxury cruise line selling world cruise suite for US$1.7 million
Luxury operator Regent Seven Seas Cruises is raising their price tag to eye-watering levels, with a suite on an upcoming 140-day world voyage costing US$1.7 million.
Why Kim Kardashian is being sued for 'knockoff' furniture
The estate of minimalist contemporary artist Donald Judd filed a lawsuit against Kardashian this week, claiming the fashion and beauty mogul promoted 'cheap knockoffs' of his furniture designs.
CRA no longer requiring 'bare trust' reporting in 2023 tax return
The Canada Revenue Agency announced Thursday it will not require 'bare trust' reporting from Canadians that it introduced for the 2024 tax season, just four days before the April 2 deadline.
A Filipino villager is nailed to a cross for the 35th time on Good Friday to pray for world peace
A Filipino villager has been nailed to a wooden cross for the 35th time to reenact Jesus Christ’s suffering in a brutal Good Friday tradition he said he would devote to pray for peace in Ukraine, Gaza and the disputed South China Sea.
Ontario homeowner on the hook for $27,000 when contractor severed power line
An Ontario man who built a garage on his property has been locked in a battle with his electricity provider for a year and half over a severed power line.
King Charles will attend Easter Sunday service at Windsor
Buckingham Palace officials say King Charles III and Queen Camilla will attend an Easter service at the chapel at Windsor Castle on Sunday.