Propane company sues Yukon helicopter business over alleged breach of contract

A propane company in Yukon is suing a local helicopter company, claiming it breached a contract between them.

Super Save Propane filed its statement of claim in the Small Claims Court of Yukon in December 2021. It claims it had a five-year contract for propane supply with Whitehorse-based Fireweed Helicopters beginning in November 2017, but that Fireweed ended the contract 17 months early.

Super Save says it's owed for the propane Fireweed would have purchased from the company over the remainder of the contract, which amounts to $18,480, plus interest.

Super Save cites a clause in the contract that binds Fireweed to keep paying the full price of propane if it cancels the service early. That cost is calculated based on the average amount Fireweed spent on propane per month and the number of months left in the contract.

But Fireweed argues the claim should be dismissed.

In a reply filed to the court shortly afterwards, the helicopter company claims the remaining balance doesn't accurately reflect the loss Super Save would have suffered by losing the contract, but instead acts as a "penalty."

James Tucker, legal counsel for Fireweed Helicopters, said the issue is an important one from a consumer rights perspective.

"We say it's not fair and it's unenforceable, because it's not a genuine pre-estimate of the damages, but a clause intended to penalize customers who decide to terminate their contracts," he said.

Alleged problems with delivery service

Fireweed also claims Super Save failed to provide auto-fill services in a timely manner and to ensure its equipment was functioning properly.

Fireweed says it had signed up for auto-fill delivery with Super Save. But one morning in January 2020, Fireweed claims, its propane tanks in Whitehorse were extremely low and hadn't been filled "in some time."

Fireweed also says it had leased a tank blanket from Super Save to help keep propane warm, but the blanket wasn't functioning properly.

When it contacted Super Save to fill the tank and repair the blanket, Fireweed alleges the company couldn't commit to a date when it could do either.

Because of this, Fireweed claims Super Save breached the contract.

None of the allegations have yet been tested in court. The case is set to go to trial next week.

CBC contacted the law firm representing Super Save for comment but has not heard back at this time.

Court action against 2nd propane company

Super Save's statement of claim also takes action against Borealis Fuels — a Calgary-based propane company with an office in Whitehorse. It says Borealis encouraged Fireweed to end its contract with Super Save.

The claim also alleges that Super Save was not informed its equipment would be removed from Fireweed's property ahead of Borealis installing its own equipment. Super Save argues that the $18,480 it's owed should be paid by Fireweed and/or Borealis.

In its reply filed in court, Borealis denies the allegations. A lawyer for that company said it wouldn't comment on the case before it goes to trial.