Gladney's Bus Ltd. has filed a lawsuit against the Newfoundland and Labrador English School District, after the school board suspended its contracts with the company over what it called safety concerns.
Twenty schools in the metro St. John's area were affected by the suspension of bus services in February.
Terry Hall, CEO of the school district, said at the time the decision was based on concerns with the fleet and "operational issues with respect to this particular contract."
In its statement of claim, filed with the provincial Supreme Court late last month, Gladney's argues that the school board doesn't have any contractual right to suspend services.
The company was on the hook for employee paycheques but wasn't receiving payment from the board, owner Josh Gladney told CBC News in April.
The company is seeking compensation for the loss of profit and damages for the loss of reputation and business opportunity, as well as legal fees.